Consumer Surplus

 … a core concept in Economic Analysis

Click for video, minute 3:56

Click for MRU video, minute 3:56

Concept description

Consumer surplus is the consumer’s gain from exchange – the difference between the maximum price a consumer is willing to pay for a given quantity and the market price. (See Tyler Cowen, reference below and video to right.)

The total consumer surplus is the sum of the consumer surplus of all buyers.

MRU practice questions

See http://www.mruniversity.com/demand-curve-consumer-surplus-definition-practice-questions.

Source

Tyler Cowen, A Deeper Look at the Demand Curve, Marginal Revolution University, at http://www.mruniversity.com/courses/principles-economics-microeconomics/demand-curve-consumer-surplus-definition, accessed 20 April 2016.

Atlas topic and subject

Supply, Demand, and Equilibrium (core topic) in Economic Analysis.

Page created by: Ian Clark, last modified on 20 April 2016.

Image: Minute 6.03 of MRU Video, at http://www.mruniversity.com/courses/principles-economics-microeconomics/demand-curve-consumer-surplus-definition, accessed 20 April 2016.