Integration is used to calculate consumer and producer surplus by finding the area between the demand and supply curves in a market. Consumer surplus is determined by integrating the demand curve above the market price, while producer surplus is found by integrating the supply curve below the market price. These areas represent the benefits consumers and producers receive from participating in the market, visually illustrating the value gained beyond the equilibrium price. By applying definite integrals, we can quantify these surpluses for better economic analysis.
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