|Posted on April 14, 2014 at 5:45 PM|
A consumer surplus exists when the market price that a consumer pays for a product is less than what he or she is willing to pay. Suppose you are willing to pay $15 for a movie ticket and you end up paying $10. You have a consumer surplus of $5. In a supply and demand graph, the area of market consumer surplus is above the equilibrium price and under the demand curve.
This No Bull Review video explains how to find consumer surplus on a graph
AP Microeconomics Unit 1 Basic Economic Concepts