Printer-friendly version

Browse the glossary using this index

A | B | C | D | E | F | G | H | I | J | K | L | M | N | O | P | Q | R | S | T | U | V | W | X | Y | Z | ALL

Page:  1  2  (Next)
  ALL

C

consumer surplus

Consumer 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.

Page:  1  2  (Next)
  ALL


Previous activity
Next activity