Consumer surplus and producer surplus are important ideas in economics. They both affect the well-being of people in an economy.

1. Consumer Surplus: This is the extra benefit that consumers get when they pay less for something than what they were willing to pay.

   For example, if someone is ready to pay $20 for a toy but finds it for only$15, the consumer surplus is $5.

   Some studies show that in competitive markets, consumer surplus can make up more than 60% of the total benefits in certain industries. This shows that consumers are getting a lot of value.

2. Producer Surplus: This is the extra benefit producers get when they sell something for more than what they were willing to accept.

   For instance, if a producer is okay with selling a shirt for $10 but ends up selling it for$15, the producer surplus is $5.

   In many markets, producer surplus usually makes up about 40% of the total benefits created.

When you add consumer surplus and producer surplus together, you get the total economic welfare.

In a perfectly competitive market, the total surplus is at its highest. This means that resources are being used in the best way possible, which can lead to more economic growth overall.