Gains from exchange
Gains from exchange
Consumer surplus is the difference between the maximum price a consumer is willing to pay and the price actually paid. For one consumer, it is calculated as maximum willingness to pay minus market price.
Step-by-step lessons covering AQA A Level Economics 1.5.11 Consumer and producer surplus (A-level only) for A Level Economics. Each lesson works through exam-style questions in Paper 1, Paper 2 and Paper 3 format. Start with the core supply-and-demand models before moving on to the more evaluation-heavy macroeconomic policy topics.