Difference between revisions of "Consumer surplus"
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| − | Consumer surplus is the net benefit a consumer obtains from buying a good. In supply and demand models, consumer surplus is represented as the value (price times quantity) captured above the price level but below the demand curve. | + | '''Consumer surplus''' is the net benefit a consumer obtains from buying a good. In supply and demand models, consumer surplus is represented as the value (price times quantity) captured above the price level but below the demand curve. |
The [[social loss]] caused by a [[monopoly]] is the lost consumer surplus. | The [[social loss]] caused by a [[monopoly]] is the lost consumer surplus. | ||
[[Category:Economics]] | [[Category:Economics]] | ||
Revision as of 21:12, September 30, 2007
Consumer surplus is the net benefit a consumer obtains from buying a good. In supply and demand models, consumer surplus is represented as the value (price times quantity) captured above the price level but below the demand curve.
The social loss caused by a monopoly is the lost consumer surplus.