Section 1
Consumer Surplus
Book
Version 3
By Boundless
By Boundless
Boundless Economics
Economics
by Boundless
3 concepts
![Thumbnail](../../../../../../figures.boundless-cdn.com/14813/square/supply-demand-graph.jpeg)
Willingness to Pay and the Demand Curve
In general as the price of a good increases, the quantity demanded of that good decreases.
![Thumbnail](../../../../../../figures.boundless-cdn.com/20254/raw/economic-surpluses.jpg)
The Demand Curve and Consumer Surplus
Consumer surplus is the difference between the maximum price a consumer is willing to pay and the actual price they do pay.
![Thumbnail](../../../../../../figures.boundless-cdn.com/20489/square/4346865114-84959a2148-o.gif)
Impacts of Price Changes on Consumer Surplus
Consumer surplus decreases when price is set above the equilibrium price, but increases to a certain point when price is below the equilibrium price.