Consumer Surplus
Consumer surplus can be defined as the difference between the price, the consumer is willing to pay and the actual price paid by the consumer.
For Ex: A lady goes to buy a suit, the actual cost of the suit is Rs 1200 but the lady is willing to pay only Rs 700 after negotiating, she ends up paying Rs 850. The difference between the price the lady is willing to pay and ends up paying is called as Consumer Surplus.
Producer Surplus
It can be defined as difference between the price the producer is willing to sell the goods and the actual price he ends up selling.
For Ex: A shopkeeper is willing to sell a product at a minimum of Rs 5 but ends up selling it at Rs. 8. The Rs. 3 which he gains extra may be defined as producer surplus.
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