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consumer surplus , and it is defined as the difference between the value that the consumer places on a good and the amount of money that was required to pay for it
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3.9. Consumer Surplus—Value minus Expendituren P 1 .7
Because the consumer would have been willing to pay more for each of those units than she actually paid (P 1 ), then we can say she received more value than the cost to her of buying them. This concept is referred to as <span>consumer surplus , and it is defined as the difference between the value that the consumer places on those units and the amount of money that was required to pay for them. The total value of Q 1 is thus the area of the vertically crosshatched trapezoid in Exhibit 12. The total expenditure is only the area of the rectangle with height P 1 and base Q 1 Summary
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