consumer surplus

consumer surplus definition - business

consumer surplus

In economics, the excess between the price a consumer is willing to pay for something compared to the price that must actually be paid. For example, the consumer surplus of $4,000 results if you can buy a Mazda RX-8 for $24,000 when you would be willing to pay $28,000.

The American Heritage® Dictionary of Business Terms Copyright © 2009 by Houghton Mifflin Harcourt Publishing Company. Published by Houghton Mifflin Harcourt Publishing Company. All rights reserved.

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