Consumer Surplus
What a buyer would have been
willing to pay minus the price she actually paid. Someone who was willing to pay (however grudgingly) up to $500 for an airline ticket and who actually buys the ticket for $350 gets $150 of consumer surplus.
For consumers as a whole, consumer surplus is the area between the demand curve, which shows willingness to pay, and the price they actually pay:
Site Index |
Zoom |
Admin
URL: http://wilcoxen.maxwell.insightworks.com/pages/154.html
Peter J Wilcoxen, The Maxwell School, Syracuse University
Revised 11/29/2003