Saturday, July 28, 2018

consumer surplus how it makes a benefit to consumers ?



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.

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