What is surplus?
What is surplus?
Consumer surplus is the difference between the maximum price a buyer is willing to pay and the price actually paid. On a price and quantity diagram, it is the area below the demand curve and above the market price.
Step-by-step lessons covering Edexcel A A Level Economics 1.2.8 Consumer and producer surplus 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.