Economics Consumer Surplus And Producer Surplus Questions Medium
Consumer surplus is a concept in economics that measures the difference between what consumers are willing to pay for a good or service and what they actually pay. It represents the additional benefit or value that consumers receive from a purchase, beyond what they have to pay for it. Consumer surplus is calculated by subtracting the price consumers are willing to pay from the actual price they pay. It is often depicted graphically as the area below the demand curve and above the market price. Consumer surplus is an important indicator of consumer welfare and is influenced by factors such as price, consumer preferences, and market competition.