Question

The difference between the highest price a consumer is willing to pay for a good or service and the price the consumer actually pays. Consumer surplus measure the net benefit to consumers from participating in a market rather than the total benefit. Consumer surplus = total benefit minus the payment to producers.

Answer 1

Consumer Surplus

Explanation:

Consumer surplus is a function of consumers ' economic advantages. Consumer surplus arises when the price of a product or service is lower than the price that customers are willing to pay. This is a reflection of the added benefit that customers earn when they spend less than they are willing to pay.

There is a consumer surplus if the user is prepared to pay more than the present market price for a particular product.

The positive feeling of a good deal is a market surplus.  Consumer surplus always rises when the price of a good drops and the price of a good increase goes down.