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. | ||
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| + | The lost Consumer Surplus is the [[social cost]] of a [[monopoly]]. | ||
[[Category:Economics]] | [[Category:Economics]] | ||
Revision as of 03:13, May 16, 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 lost Consumer Surplus is the social cost of a monopoly.