An entity provides a service to people that necessarily produces a consumer surplus. Say you pay $2 for a cup of coffee, you obviously value it at least $2 othe

An entity provides a service to people that necessarily produces a consumer surplus. Say you pay $2 for a cup of coffee, you obviously value it at least $2 otherwise you wouldn't buy it, but likely more. Suppose you value it at $3 (i.e. the company could charge up to $3 and you would pay), by allowing the entity to sell it to you at the market rate of $2, they created $1 surplus value to you. The same works on the producer side. It typically costs them less than the market price to produce the product. This is basic economics and kind of wild I have to explain.