Consumer Surplus



Consumer surplus measures the economic benefit of a certain consumer. Consumer surplus occurs when the price that consumers pay for a product is less than the price that they're actually willing to pay. In essence, it's the measure of the additional benefit that consumers receive due to the fact that there are paying less.
Image result for los altos high schoolIn our community there are many students that could have attended Los Altos High, a public school, but instead chose to attend Saint Francis High, a private school. This consumer choice was made for a multitude of reasons, financial stature, religious beliefs, athletic prowess. However, for many students either school is interchangeable. For many of the wealthy populous at Los Altos, choosing to attend Los Altos High over Saint Francis High is a consumer surplus.

Consumer surplus’ hurt the manufacturers, because they are not maximizing their profits. In the case of Saint Francis, they must be annoyed when people who can afford to attend Saint Francis, choose to go to public school instead.

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