How to Determine Consumer Surplus?

Identify the demand curve

Determine the market price

Find the quantity purchased at that price

Calculate the maximum price consumers are willing to pay for each unit up to that quantity

Compute the area between the demand curve and the market price line up to the purchased quantity

Use the formula: Consumer Surplus = Total willingness to pay − Total amount paid

For a linear demand curve, use the triangle formula: Consumer Surplus = 1/2 × base × height

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