What is Consumer Surplus?
- Consumer surplus is the difference between the amount that a buyer would be willing to pay for a good or service and the price paid.
How Do I Remember It?
- Think of consumer surplus as the extra satisfaction or value that consumers gain when they get a good deal. It’s like scoring a discount on something you really wanted.
Real World Example
- Imagine you are willing to pay $50 for a concert ticket, but you only need to pay $30. Your consumer surplus is $20 because you received additional value by paying less than what you were willing to spend.
Follow us on TikTok, Instagram, and YouTube below.
