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Define, show on a graph and give an example of Consumer Surplus

Define, show on a graph and give an example of Consumer Surplus

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Answer) Consumer Surplus:- Consumer Surplus is the difference between the price that consumers pay and the price that they are willing to pay. Consumer Surplus is indicated by the area under the demand curve and above the market price.

Consumer Surplus = Maximum willingness to Pay - Actual Price

For instance, let's say that you bought an airline ticket for a flight to Paris during college holiday week for $100, but you were determining and willing to pay $300 for one ticket. The $200 represents your consumer surplus.

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