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Definitions:
Consumer Surpluses
The difference between the total amount that consumers are willing to pay and the total amount that they actually pay for a good or service.
Producer Surpluses
The difference between the actual amount received by sellers and the minimum amount they would be willing to accept for their goods or services.
Allocative Efficiency
A state of the economy in which resources are apportioned in a way that maximizes the overall benefit to society.
Productive Efficiency
A situation where an economy or a production entity cannot produce more of one good without sacrificing production of another good and by using the least costly production techniques.
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