Answer
Consumer surplus equals the buyer's willingness to pay minus the price.
Work Step by Step
To determine the consumer surplus, you subtract the market price of a good from the amount a consumer is willing to pay.
Consumer surplus = amount willing to pay - market price
For example, the price of Product A is 10 dollars. There are 3 people who are interested in buying Product A at the store. Angie is willing to pay 20 dollars, Bob is willing to pay 15 dollars, and Chris is willing to pay the market price of 10 dollars.
Angie's consumer surplus = 20 - 10 = 10 dollars
Bob's consumer surplus = 15 - 10 = 5 dollars
Chris' consumer surplus = 10 - 10 = 0
In this case, Chris is the marginal buyer who has no consumer surplus.
