consumer's surplus (Meaning)
consumer's surplus ()
The excess that a purchaser would be willing to pay for a commodity over that he does pay, rather than go without the commodity; -- called also consumer's rent.
Synonyms & Antonyms of consumer's surplus
No Synonyms and anytonyms found
consumer's surplus Sentence Examples
- Consumer's surplus is a measure of the economic benefit consumers derive from purchasing a good or service.
- When the price of a product is lower than what consumers are willing to pay, consumer's surplus is generated.
- Consumer's surplus represents the additional satisfaction consumers receive from purchasing a good at a price lower than their maximum willingness to pay.
- Economists use consumer's surplus to analyze the welfare gains that consumers experience from market transactions.
- The demand curve in economics illustrates the relationship between the quantity of a good demanded and the consumer's surplus.
- Consumer's surplus can vary depending on changes in prices, preferences, and income levels.
- Consumer's surplus is maximized when the price of a product equals the consumer's willingness to pay for each unit consumed.
- The concept of consumer's surplus is integral to understanding consumer behavior and market efficiency.
- Auctions often result in consumer's surplus as winning bidders pay less than their maximum bid.
- Consumer's surplus is a key concept in welfare economics, as it quantifies the value consumers receive from participating in markets.
FAQs About the word consumer's surplus
The excess that a purchaser would be willing to pay for a commodity over that he does pay, rather than go without the commodity; -- called also consumer's rent.
No synonyms found.
No antonyms found.
Consumer's surplus is a measure of the economic benefit consumers derive from purchasing a good or service.
When the price of a product is lower than what consumers are willing to pay, consumer's surplus is generated.
Consumer's surplus represents the additional satisfaction consumers receive from purchasing a good at a price lower than their maximum willingness to pay.
Economists use consumer's surplus to analyze the welfare gains that consumers experience from market transactions.
