On a graph, the area below a demand curve and above the price measures consumer surplus.
Consumer surplus is represented by the area under the demand curve and above the price that the consumer pays.
Consumer surplus is an economic measurement of consumer benefits resulting from market competition. A Consumer surplus happens when the value that purchasers pay for an item or administration is not exactly the cost they're willing to pay. It's a proportion of the extra advantage that shoppers get on the grounds that they're paying less for something than what they were able to pay.
Financial experts characterize purchaser surplus with the accompanying condition:
Customer excess = (½) x Qd x ΔP
where:
Qd = the amount at equilibrium where organic market are equivalent
ΔP = Pmax - Pd, or the cost at balance where market interest are equivalent
Pmax = the value a customer will pay
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