Topic Videos

Understanding Consumer Surplus

Level:
AS, A-Level, IB
Board:
AQA, Edexcel, OCR, IB, Eduqas, WJEC

Last updated 15 Dec 2020

Consumer surplus is a measure of the economic welfare that people gain from consuming goods and services.

Understanding Consumer 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.

© 2002-2024 Tutor2u Limited. Company Reg no: 04489574. VAT reg no 816865400.