Lesson Plan

• Define producer surplus and distinguish it from consumer surplus.
• Explain how producer surplus is represented graphically and calculated for linear and non‑linear supply curves.
• Analyse the significance of producer surplus for producer welfare, market efficiency and policy evaluation.
• Apply producer surplus concepts to evaluate the impact of taxes, subsidies, or price controls on producer welfare.

• Projector or interactive whiteboard
• Slides with supply‑demand diagram
• Calculator or spreadsheet
• Worksheet with practice problems on calculating PS
• Graph paper and rulers

Begin with a quick real‑world hook: ask students how much extra profit a farmer might earn when market prices rise above his cost of production. Review the earlier lesson on consumer surplus to link the two welfare measures. State that by the end of class they will be able to define, calculate and explain why producer surplus matters for firms and policy.

1. Do‑now (5’) – students answer a short question on consumer surplus on the board.
2. Mini‑lecture (10’) – introduce definition and graphical area of producer surplus using slides.
3. Guided calculation (12’) – work through a linear supply example; students compute PS with the triangle formula.
4. Concept check (5’) – quick poll or exit‑ticket question on the significance of producer surplus.
5. Application activity (15’) – groups analyse a policy scenario (tax/subsidy) and predict PS change, recording answers on the worksheet.
6. Summary & reflection (8’) – teacher revisits objectives; students share key findings.

Summarise that producer surplus measures the extra earnings producers receive and is key to assessing welfare and policy impacts. Have students complete an exit ticket stating one way a tax could affect producer surplus. Assign homework: calculate producer surplus for a given supply curve and discuss its implication for market efficiency.