WHAT IS CONSUMER’S SURPLUS

            WHAT IS CONSUMER’S SURPLUS

The consumer’s surplus refers to the difference between the amount a consumer budgeted I pay for a particular commodity based on i expected level of satisfaction and the act amount he paid to have the commodity, concept of consumer’s surplus is represent:

From the above graph, it is observed that when consumer made use of the very first unit, he

willing to pay as much as 6 120.00 but the commodity price was 6 50.00. So, he was able

save about 6 70.00.

Therefore, any amount above the market price of 6 50.00 represents
consumer’s surplus.

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