While taking into consideration the demand and supply curves, the formula for consumer surplus is CS = ½ (base) (height). In our example, CS = ½ (40) (70-50) = 400.

Apr 7, 2025 · Consumer surplus = maximum price willing to pay – actual price In other words, this formula for consumer surplus represents the difference between the highest amount the consumer …

May 14, 2025 · Consumer Surplus = Maximum Price – Market Price. From there, the expanded variation of the formula is the following: Consumer Surplus = (1/2) × Quantity at Equilibrium × …

Consumer surplus is the differentiation between the maximum product price consumers are willing to spend and the actual price they pay. The consumer surplus formula = Highest product price …

In this article, I will show you step-by-step how to find consumer surplus on a graph, calculate it with the formula, and apply it to practical market examples. By the end, you’ll be able to analyze …

May 20, 2025 · Consumer surplus is based on the economic theory of marginal utility, which is the additional satisfaction a consumer gains from one more unit of a good or service. The consumer …

Oct 10, 2025 · In this module, we explore the definition, formula, graph, and practical implications of consumer surplus. What is Consumer Surplus? Consumer Surplus is the sum of the difference …

According to the consumer surplus definition, we need to determine the difference between how much the customer actually pays and the maximum price they are willing to pay. That is, the consumer …

Consumer Surplus = Total utility (TU) - (Total units purchased Marginal utility (MU)) The above equation states that a consumer's surplus is a positive difference between the total utility from a …

The consumer surplus formula is ½ × (Willing Price – Actual Price) × Quantity. This formula finds how much value a buyer gets when the price is lower than expected.