Now let's see what happens when we put Producer Surplus and Consumer Surplus together on the same graph. So we're going to have this idea of economic surplus. An economic surplus is the sum of the consumer surplus and the producer surplus, alright? So it's going to be our total surplus here. Economic surplus, we're going to call it our total surplus as well, right? Total surplus. So when are we going to maximize surplus, right? We talk about maximizing a lot, maximizing profit, maximizing revenue, we want to maximize surplus as well here, and that's going to be when the market is in equilibrium. Okay? So when we have that equilibrium, that is when we are going to have maximum surplus. So let's look at that on the graph. Look at this, kind of a standard supply and demand graph here. Right? We've got our price axis, our quantity axis, our downward demand, double d's, upward supply. Right? So what's going on here? We've got our maximum surplus in this case, and I'm going to show you why in a second, but just to be clear, we have this price of P star, right? We are at equilibrium, we've got P star and Q star, our equilibrium price and equilibrium quantity and what do we have? At that price, our consumer surplus is going to be this purple area that I'm highlighting now, right. Everything below the demand curve but above the price, right? That's our consumer surplus, which I'll write out here, and now let's do the same thing with producer surplus. That's going to be everything below the price but above the supply curve, right, and that's going to give us this area in green. Right? So when we add the green area, the producer surplus, with the consumer surplus, that is where we get our total surplus or economic surplus, right? So this is the case where it's maximized, right? We're going to have the most area between the supply and demand curve when we're at equilibrium. So let's go ahead and see a situation where we're not at equilibrium, right? So we're going to have what's called a deadweight loss when we're not at equilibrium. So if we're not at equilibrium, it's called a deadweight loss, that emerges here, and that comes from the inefficiency of not being at equilibrium. Right? So let's go ahead and look on this graph. We're going to see we've got these different prices, right? We had our equilibrium price here, P star and Q star, right? But now let's go ahead and say that the price is set too low, right? And you as a consumer, you're like yeah, low price, I love it. This is great for us. Which is true, you're going to see that. Consumers do benefit from that still, but let's see what happens in this situation. So quantity low here, I'm going to put as well. So I'm going to go ahead and label these boxes, these different areas of the graph. I'm going to call this area A B C D. What do you think about this last one? I'm going to go with E. Sounds pretty good. Alright, so we've got those 5 different areas of the graph, kind of cut off by those dotted lines, right? So let's talk about consumer surplus and producer surplus in each of these situations, and then we'll talk about deadweight loss. So first, at equilibrium, we've got our consumer surplus which is everything above the price, right? So our equilibrium price was right here, right? The P star. So we're going to have this area, and I wouldn't suggest you don't go ahead shading everything because I'm going to be un coloring stuff and we're going to be making different areas out of this graph. So just kind of follow along here and see where I'm going. So that area is going to be our consumer surplus, right? A plus B. You're going to see is our consumer surplus. So I'm going to write it in here. A plus B is the area that makes consumer surplus there and let's go ahead and do the same thing with producer surplus. So producer surplus is everything below the price above the supply curve, right, and that's going to give us this triangle, the one we're used to, right? So remember, in equilibrium, we've got our maximum surplus, which is everything is going to be surplus. So here C plus E are all Producer Surplus in this case. Alright, so I'm going to go ahead and erase these colors and let's do the same thing, at the low price. So now let's talk about consumer surplus and producer surplus at PL, right? Now we're at that low price. So what are we going to see that's happening? Let's talk about consumer surplus first, right? You're like hey low price, I love it, let's go ahead and see what happened to producer surplus or excuse me consumer surplus. So in this case, it's going to be everything above, the price of PL, right? So you might think at first that it's going to be this whole area here including B and D, right? That might be your first guess at what our consumer surplus is going to be, but that's not right because if you think about area B and D, those trades are not happening at the low price, right? If we're at this low price, let's think about this real quick, at this low price, right here, the quantity exchanged is this quantity low, So those exchanges passed to the right that are happening in the area of BND, those didn't happen, right? And if the trade didn't happen, no surplus happened, right? Because it has to the exchange has to happen for the surplus to exist, alright? So that is actually not going to be the area of our consumer surplus because B and D are not part of our surplus, right? Those exchanges didn't happen, there's no surplus there. So what we're going to see is that our surplus, our consumer surplus is going to be this area right here. A and C. Okay? So that area of B and D, those trades didn't happen and you can kinda guess what's going to happen with B and D in a second, alright? So A plus C is now our consumer surplus. Let's talk about producer surplus, right? And as we expected, producer surplus at a lower price, right, when the price goes down, producers would rather have high prices, right? They want to sell it for as high as possible. The price went down, they're going to lose surplus in this situation. So at this low price, it's everything below, the price which is PL, but above the supply curve. And notice what's the only thing in there is just E, right? E is the only area for the producer surplus. So producer_surplus has decreased just like we expected, right? The price went down, producer_surplus decreased, right? And, it looks like consumer_surplus increased, right? That area seems bigger than the A plus B area, the A plus C. So we did gain something as consumers, but at what cost to society, right? So remember in equilibrium, we didn't have deadweight_loss, right? There's no deadweight_loss in equilibrium because we're maximizing efficiency, but in this case, when we have a low price, we're not at our efficient price, right? Our equilibrium price, we are going to have deadweight_loss right here. The deadweight_loss is going to be B and D and this is because those exchanges didn't happen. If the market had set the correct price or if there was yeah if we were at equilibrium we would have got that as surplus, but since we didn't exchange up to the equilibrium quantity, we stopped earlier because of this different price. These exchanges didn't happen and society is worse off for it, right? People that would...