What is the relationship between the CS and PS graph in economics?

Answer 1

In economics, the relationship between the consumer surplus (CS) and producer surplus (PS) graph shows the benefits that consumers and producers receive from a transaction. Consumer surplus represents the difference between what consumers are willing to pay for a good or service and what they actually pay, while producer surplus represents the difference between the price producers receive and the minimum price they are willing to accept. The combined area of the CS and PS graph represents the total economic welfare generated by a transaction.