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What is the calculation for consumers surplus?

Answer:
Consumer Surplus = the difference between what consumers are willing to pay and what they actually pay for a good or service.

It is hard to explain this thru formula as it require a long explanation and debrief.

Essentially it is represented by a triangle, and the surplus is calculated thru the formula to calculate a Triangles height. That is (BASE x HEIGHT)/2

I have attached a link below. Please refer it for details.

First answer by Arun.Sigamani. Last edit by Arun.Sigamani. Contributor trust: 17 [recommend contributor recommended]. Question popularity: 4 [recommend question].

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