Consumer Surplus

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  • Consumer Surplus.
    • Refer to page 29 in revision guide.
    • The area BELOW the demand curve and ABOVE the equilibrium line.
    • Definition:
      • The difference between the price that the consumer is willing and able to pay and the price that they actually pay.
    • Anything that causes a shift in the demand curve = change in price.
      • This change in price will either be closer or further away from the amount that the consumer is willing/able to pay. This changes the consumer surplus.

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