Explore: Consumer Surplus

either of two related quantities: Consumer surplus, or consumers' surplus, is the monetary gain obtained by consumers because they are able to purchase

Consumer surplus for software products can be calculated differently from other products. Customers tend to buy products with greater consumer surplus

transfer consumer surplus to the producer. Consumer surplus is the difference between the value of a good to a consumer and the price the consumer must pay

monopolistic markets. It is designed to enable the firm to capture more consumer surplus than it otherwise would in a non-discriminating pricing environment

producer surplus (represented in blue). 1800 - 1250 = $550 The cost to consumers of the price support is equal to the loss in consumer surplus (represented

demand curves are cut short. The consumer surplus and the producer surplus are also cut short. The loss of such surplus is never recouped and represents

the consumer surplus from the superior variation of Product A is greater than the consumer surplus gained from Product B. Alternatively, the consumer only

enables sellers to capture additional consumer surplus and maximize their profits while offering some consumers lower prices. Price discrimination can

for negative externality. Consumer surplus is an economic indicator which measures consumer benefits. The price that consumers pay for a product is not

sells in order to maximize social welfare (the sum of producer and consumer surplus) while earning enough revenue to cover its fixed costs. Under Ramsey