It is the difference between the amount that a consumer is willing to pay and the amount that he actually pays for the commodity.
- willingness to pay : the maximum amount that a buyer pay for commodity.
for example :- if a consumer go to buy a denim worth of 600 rs but he gets that denim at the rate of 500 rs , in that case the consumer gets a surplus of 100 rs.
formula find consumer surplus : what is consumer to ready to pay MINUS what he actually pay.
No comments:
Post a Comment