Explaining Consumer Surplus Tutor2u Economics What is consumer surplus? when there is a difference between the price that you pay in the market and the value that you place on the product, then the concept of consumer surplus becomes a useful one to look at. this is an important idea that you can use on many occasions in your exams. exam question on changes in consumer and producer surplus. Consumer surplus is the difference between the total amount that consumers are willing and able to pay for a good or service (shown by the demand curve) and the total amount they actually do pay (i.e. the market price). consumer surplus is indicated by the area under the demand curve and above the market price. share : economics.
Explaining Consumer Surplus Tutor2u Economics Consumer surplus. a measure of the welfare that people gain from consuming goods and services, or a measure of the benefits they derive from the exchange of goods. consumer surplus is the difference between the total amount that consumers are willing and able to pay for a good or service (indicated by the demand curve) and the total they pay. The initial level of consumer surplus = area ap1b. if there is an outward shift of supply – for example caused by an improvement in production technology or productivity, then the equilibrium price will fall, and quantity demanded will expand. this leads to an increase in consumer surplus to a new area of ap2c. The concept of consumer surplus as an important measure of economic welfare is covered in this short revision video.#aqaeconomics #ibeconomics #edexceleconomics. This study note for ib economics covers consumer and producer surplus. consumer and producer surplus are fundamental concepts in economics that measure the welfare or benefit gained by consumers and producers in a market. these surpluses help illustrate the efficiency of market transactions and the gains from trade.
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