Calculate producer surplus and economic welfare analysis
Producer Surplus: The difference between what producers receive for a good and the minimum amount they would accept. It represents the benefit producers gain from market participation.
Formula: Producer Surplus = ½ × (Market Price - Minimum Price) × Quantity
Economic Interpretation: Shows how much producers benefit from being able to sell at market price rather than their reservation price.
Market Welfare: Combined consumer and producer surplus indicates total economic welfare created by the market.