consumer surplus

Consumer surplus is the difference between what consumers are willing to pay for a good or service and what they actually pay. It represents the extra benefit or satisfaction consumers receive when they purchase a product for a lower price than they were prepared to pay. For example, if you value a concert ticket at $100 but buy it for $70, your consumer surplus is $30. This concept illustrates how consumers derive additional value from their purchases, reflecting overall economic well-being and helping to analyze market efficiency.