Tuesday, 14 January 2025, 10:41 AM
Site: MyCourses
Course: 25E52000 - Market Entry Strategies for Entrepreneurial Business, Lecture, 11.1.2022-25.2.2022 (25E52000_aalto-CUR-142988-3064939)
Glossary: Glossary
C
consumer surplusConsumer
surplus is generated when the consumer feels that they get more benefit (B) out
of the product compared to the price (P) that they pay to obtain it. Consumer
surplus occurs when B – P > 0. The market equilibrium price denotes B – P =
0. All points in the demand curve to the left of the equilibrium denote B – P >
0, or consumer surplus. |