Economic surplus refers to the benefit that consumers and producers receive when they engage in a market transaction. For consumers, it is the difference between what they are willing to pay for a good or service and what they actually pay. For producers, it is the difference between the price they receive for a product and the minimum price they would accept to produce it. This concept helps to measure the overall efficiency of a market. When economic surplus is maximized, it indicates that resources are being allocated effectively, leading to greater overall welfare for society. Understanding economic surplus can aid in evaluating policies and market changes.