Consumer Surplus
The Price which a consumer pays for a commodity is always
less than he is willing to pay for it, so that the satisfaction which he gets
from its purchase is more than the price paid for it.
Consumer’s surplus can be defines as the difference between
what a consumer is willing to pay for a commodity and what he actually does pay
for it.
Consumers always like to feel like they are getting a good deal on the goods and services they buy.
For Example, assume a consumer goes
out for shopping for a DVD player and he or she is willing to spend Rs 2500.
When this individual finds that the DVD players is on sale for Rs 1500, So we
can say that this person has a consumer surplus of Rs 1000
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