With illustrations define and calculate the consumer’s surplus

With illustrations define and calculate the consumer’s surplus

Consumer surplus is the  difference   between   what  the  consumer   is willing and able   to pay  for  the  commodity   and what  he  actually  pays,  whereby  what  he  actually  pays  is less  than  what  the  consumer   is willing  to pay.

Graphically consumer surplus is represented by the area below the demand curve but above the equilibrium price.

 

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