Difference between revisions of "Calculate Consumer Surplus"
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Consumer surplus is a term used by economists to describe the difference between the amount of money consumers are willing to pay for a good or service and its actual market price.<ref name="rf1">http://www.investopedia.com/exam-guide/cfa-level-1/microeconomics/marginal-benefit-cost.asp</ref> Specifically, a consumer surplus occurs when consumers are willing to pay ''more'' for a good or service than they currently pay. Though it sounds like a tricky calculation, calculating consumer surplus is actually a fairly easy equation once you know what to plug into it. | Consumer surplus is a term used by economists to describe the difference between the amount of money consumers are willing to pay for a good or service and its actual market price.<ref name="rf1">http://www.investopedia.com/exam-guide/cfa-level-1/microeconomics/marginal-benefit-cost.asp</ref> Specifically, a consumer surplus occurs when consumers are willing to pay ''more'' for a good or service than they currently pay. Though it sounds like a tricky calculation, calculating consumer surplus is actually a fairly easy equation once you know what to plug into it. | ||
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== Steps == | == Steps == | ||
=== Defining Key Concepts and Terms === | === Defining Key Concepts and Terms === | ||
