In this article, we are going to provide a consumer surplus calculator, which will provide results on an automatic basis. Before approaching to consumer surplus calculator let us take an overview of consumer surplus.
What is Consumer Surplus: An Overview
In economics, the difference between the price that consumers actually pay and the maximum price they’re willing to pay is the consumer surplus. You have probably seen curves describing supply (S) and demand (D) as a function of price (P) versus quantity (Q) if you have ever attended an economics lecture.
If not, in the market surplus graph below, you can easily understand the notion. As a lower price implies a higher demand for a given article, the demand curve (D) is downward. In comparison, the supply curve (S) is upward, as producers generate more if they can sell their commodity at a higher price. The consumer surplus is the region between the price of equilibrium (the price level where the two curves cross each other) and the curve of demand.