Saturday, September 15, 2018

CONSUMER SURPLUS WITH EXAMPLES

Consumer surplus:
The difference between the amount consumer willingly and able to pay to buy any goods or services and the amount consumer actually pays to buy the products and services.
Example 1:
 I went to shop to purchase a T shirt the seller said it costs 800 rs I negotiate for 600 rs here the consumer surplus is 200 rs i.e.(800- 600)=200
Example 2:
 When I was in intermediate I went to purchase a second hand bike the seller said it costs 66,500 rs I negotiate for 63,000. Here the consumer surplus is 3,500 rs i.e.(66,500-63,000)


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