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How you can Explain the Concept of "Consumer Surplus"?

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Question added by VENKITARAMAN KRISHNA MOORTHY VRINDAVAN , Project Execution Manager & Accounts Manager , ALI INTERNATIONAL TRADING EST.
Date Posted: 2014/09/14
Vinod Jetley
by Vinod Jetley , Assistant General Manager , State Bank of India

Consumers always like to feel like they are getting a good deal on the goods and services they buy and consumer surplus is simply an economic measure of this satisfaction. For example, assume a consumer goes out shopping for a CD player and he or she is willing to spend $250. When this individual finds that the player is on sale for $150, economists would say that this person has a consumer surplus of $100.

Sohaib Naseem
by Sohaib Naseem , Manager Advertisement Sales , Fashion Traders

A Difference between consumer willingness to pay on a commodity and its actual price or equilibrium price.

 

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