Analysis of Consumer Surplus and Producer Surplus in Achieving Market Efficiency through the Mechanism of Supply and Demand Equilibrium
DOI:
https://doi.org/10.65310/ycxc5m17Keywords:
Consumer Surplus, Economic Welfare, Market Efficiency, Market Equilibrium, Producer Surplus.Abstract
Market mechanisms determine the price and quantity of goods traded, while consumer and producer surplus measure the resulting welfare. Indonesian studies have frequently described supply–demand equilibrium but have rarely examined surplus, efficiency, and sources of market inefficiency within a common framework. This study examined the relationship between market equilibrium and efficiency, the contribution of both surplus measures to welfare, and the effects of monopoly, price regulation, taxation, and subsidies. A qualitative systematic literature review examined six selected national journal articles through thematic and comparative analysis, supplemented by recalculation of published vegetable-market equations. The reconstructed equilibrium at Teratai Market in Bengkayang yielded approximately 86.6 kilograms at IDR 29,658, with consumer surplus of IDR 1,169,700 and producer surplus of IDR 1,067,100. Their ratio was approximately 1.10, compared with 3.29 reported in the original study. Under competitive assumptions, equilibrium maximized total surplus, whereas monopoly restricted output and generated deadweight loss. Price interventions could redistribute benefits while reducing aggregate welfare, and subsidy effects depended on policy design. Tax incidence could not be quantified from the selected literature. The proposed analytical matrix distinguishes redistribution from efficiency losses and identifies priorities for empirical verification of market-level welfare outcomes using transparent calculations and consistently documented transaction-level evidence.
Downloads
References
Agustia, D., Fitri, A., Andriyanty, R., Suryadi, D., Maifianti, K. S., & Sirait, S. (2026). Dampak kebijakan persusuan di Indonesia terhadap kesejahteraan stakeholder. Mimbar Agribisnis, 12(1). https://doi.org/10.25157/ma.v12i1.22465
Arliman, L. (2017). Perlindungan hukum UMKM dari eksploitasi ekonomi dalam rangka peningkatan kesejahteraan masyarakat. Jurnal Rechts Vinding Media Pembinaan Hukum Nasional, 6(3), 387-402. http://dx.doi.org/10.33331/rechtsvinding.v6i3.194
Awaya, Y., & Krishna, V. (2024). Panics and prices. Journal of Economic Theory, 217, Article 105818. https://doi.org/10.1016/j.jet.2024.105818
Beni, S., & Manggu, B. (2022). Surplus produsen dan surplus konsumen sayuran lokal di Pasar Teratai Bengkayang. Cendekia Niaga, 6(2), 129–137. https://doi.org/10.52391/jcn.v6i2.715
Bronnenberg, B. J. (2024). Innovation and distribution: An equilibrium model of manufacturing and retailing. The Economic Journal, 134(660), 1379–1400. https://doi.org/10.1093/ej/uead113
Cartwright, A., & Cartwright, E. (2024). A classroom market experiment: Data and reflections. The Journal of Economic Education, 55(3), 276–291. https://doi.org/10.1080/00220485.2024.2351853
Chintapalli, P., & Tang, C. S. (2022). Crop minimum support price versus cost subsidy: Farmer and consumer welfare. Production and Operations Management, 31(4), 1753–1769. https://doi.org/10.1111/poms.13642
Chintya, L. F., Mondoringin, A. Z. L., Hanny, A. C., Langi, Y. A., & Sumual, A. K. (2025). Analisis Konseptual Faktor-Faktor Non-Harga yang Mempengaruhi Permintaan dan Penawaran: Tinjauan Pustaka Ekonomi Mikro. SIGARUDA JOURNAL: Jurnal Ilmiah Bidang Sosial, Ekonomi, Budaya, Teknologi dan Pendidikan, 1(2), 346-351. https://ejournal.sociovisionary.com/index.php/garudajournal/article/view/132
Damanik, S. K., & Harahap, M. A. (2026). Tren makanan melalui sosial media: Solusi alternatif perilaku konsumsi Islam tinjauan systematic literature review. [Nama jurnal belum teridentifikasi], (3), 1074–1086. https://doi.org/10.60036/jbm.1110
Dan, B., Lei, T., Zhang, X., Liu, M., & Ma, S. (2023). Modeling of the subsidy policy in fresh produce wholesale markets under yield uncertainty. Economic Modelling, 126, Article 106413. https://doi.org/10.1016/j.econmod.2023.106413
Döpper, H., MacKay, A., Miller, N. H., & Stiebale, J. (2025). Rising markups and the role of consumer preferences. Journal of Political Economy, 133(8), 2462–2505. https://doi.org/10.1086/735510
Eisenhauer, J. G. (2024). Shift or pivot? Market entry and exit with linear supply and demand curves. The American Economist, 69(1), 168–186. https://doi.org/10.1177/05694345231209228
Harahap, M. A., & Saputra, J. (2026). Eksplorasi resiliensi ekonomi perspektif islam: Tinjauan literatur terpilih. Journal of Economics Research and Policy Studies, 6(1), 225-240. https://doi.org/10.53088/jerps.v6i1.3040
Hopenhayn, H., & Saeedi, M. (2023). Optimal information disclosure and market outcomes. Theoretical Economics, 18(4), 1317–1344. https://doi.org/10.3982/TE5104
Jegers, M., Buts, C., & Van Puyvelde, S. (2024). Welfare effects of variable and fixed cost subsidies in profit, non-profit and mixed markets. Managerial and Decision Economics, 45(6), 4138–4156. https://doi.org/10.1002/mde.4238
Kaufmann, M., Andre, P., & Kőszegi, B. (2024). Understanding markets with socially responsible consumers. The Quarterly Journal of Economics, 139(3), 1989–2035. https://doi.org/10.1093/qje/qjae009
Loertscher, S., & Muir, E. V. (2022). Monopoly pricing, optimal randomization, and resale. Journal of Political Economy, 130(3), 566–635. https://doi.org/10.1086/717894
Manik, S., Irnad, Mulyasari, G., Yuliarso, M. Z., & Cahyadinata, I. (2024). Determinant factors of visitors to Parhonasan Daihonas agrotourism in North Sumatera, Indonesia. Journal of Agribusiness Management and Development, 5(1), 31–39. https://doi.org/10.22146/jamadev.v5i1.11927
McCorriston, S., & MacLaren, D. (2024). Market intermediaries, storage and policy reforms. Journal of Agricultural Economics, 75(1), 114–136. https://doi.org/10.1111/1477-9552.12542
Mudrik Agil, A., Firdaus, A., & Buhaerah. (2024). Analisis elastisitas permintaan dan penawaran dalam ekonomi modern. Buana Matematika: Jurnal Ilmiah Matematika dan Pendidikan Matematika, 14(1), 83–94. https://doi.org/10.36456/buanamatematika.v14i1.8517
Mukherjee, A., & Sinha, U. B. (2024). Welfare reducing vertical integration in a bilateral monopoly under Nash bargaining. Journal of Public Economic Theory, 26(3), Article e12701. https://doi.org/10.1111/jpet.12701
Muna, N., Mulyo, J. H., & Irham. (2023). Economic valuation of agrotourism: A case study of “Bhumi Merapi” in Sleman Regency. Journal of Agribusiness Management and Development, 4(1), 40–49. https://doi.org/10.22146/jamadev.v4i1.9986
Nasution, A. H., Matondang, K. A., Simbolon, A. V. D., Pandia, Y. B. B., & Sitorus, S. F. A. (2024). Peran Konsumen dalam Menciptakan Keseimbangan Persaingan Pasar Sempura. Socius: Jurnal Penelitian Ilmu-Ilmu Sosial, 2(5). https://doi.org/10.5281/zenodo.14545417
Nugrahapsari, R. A., Hasibuan, A. M., & Novianti, T. (2024). Impacts of trade policy on the welfare of citrus producers and consumers in Indonesia. International Journal of Social Economics, 51(10), 1278–1297. https://doi.org/10.1108/IJSE-02-2023-0148
Nurzakiah, S., Nurmalina, R., & Tinaprilla, N. (2025). Market structure and competition of Indonesian eel in the Chinese market. Jurnal Manajemen dan Agribisnis, 22(2), 146. https://doi.org/10.17358/jma.22.2.146
Purnomo, B., & Risdianto, A. M. (2025). Risk analysis of farmers and rice milling businesses: A study on the rice supply chain in Yogyakarta. Jurnal Manajemen dan Agribisnis, 22(2), 133. https://doi.org/10.17358/jma.22.2.133
Ramadhani, S., Manullang, R. M. V., & Purba, T. K. A. B. (2025). Keseimbangan Pasar Monopoli dalam Teori Permintaan dan Penawaran Serta Dampaknya Terhadap Kesejahteraan Sosial. Jurnal Mutiara Ilmu Akuntansi, 3(3), 90-94. https://doi.org/10.55606/jumia.v3i1.3564
Ray, S., & Giannakas, K. (2024). An economic analysis of the “Buy Local” trend. Journal of the Agricultural and Applied Economics Association, 3(1), 117–134. https://doi.org/10.1002/jaa2.101
Safitri, M. A., Suryantini, A., & Irham. (2024). Unraveling the dynamics price volatility and risk of live broiler chicken in Jawa Tengah Province. Jurnal Manajemen dan Agribisnis, 21(3), 348. https://doi.org/10.17358/jma.21.3.348
Sibuea, F. A., Sibuea, M. B., & Safitri, S. A. (2024). Indonesian soybean import in international trade. Jurnal Manajemen dan Agribisnis, 21(1), 122. https://doi.org/10.17358/jma.21.1.122
Taena, W., Binsasi, Y., Blegur, W. A., & Binsasi, R. (2025). Economic valuation of Bifemnasi Sonmahole forest area (case: Taekas and Femnasi Village in North Central Timor Regency). Jurnal Ilmu Lingkungan, 23(2), 491–499. https://doi.org/10.14710/jil.23.2.491-499
Tang, C. S., Wang, Y., & Zhao, M. (2024). The impact of input and output farm subsidies on farmer welfare, income disparity, and consumer surplus. Management Science, 70(5), 3144–3161. https://doi.org/10.1287/mnsc.2023.4850
Vadilaksono, M. I., Syaukat, Y., & Widyastutik. (2023). Harmonization of rice production policy and rice trade policy in Indonesia. Jurnal Manajemen dan Agribisnis, 20(1), 154. https://doi.org/10.17358/jma.20.1.154
Wang, Y., Ren, S., Zhou, X., & Kang, J. (2024). Welfare analysis with uncertain market segment proportions. Journal of Management Science and Engineering, 9(4), 535–552. https://doi.org/10.1016/j.jmse.2024.06.002
Xiao, Y., Zhang, X., & Wu, X. (2024). Firm decisions and government subsidies in a supply chain with consumer surplus consideration. Naval Research Logistics, 71(8), 1113–1132. https://doi.org/10.1002/nav.22207
