What is consumer surplus?
Consumer surplus = shaded area below demand and above price
Why the demand curve represents willingness to pay
Calculating consumer surplus
Worked example
Individual consumer surplus
How price changes affect CS
Price decreases → CS increases
Price increases → CS decreases
Price decrease from $6 to $4 increases consumer surplus
CS and elasticity
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AP exam tips for 2.7
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Common mistakes
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Key equations
Vocabulary
Unit 2 topics
Unit 2 overview2.1Changes in Demand2.10Tax Incidence and Deadweight Loss2.11Price Controls: Ceilings and Floors2.12International Trade and Public Policy2.2Changes in Supply2.3Price Elasticity of Demand2.4Price Elasticity of Supply2.5Cross-Price Elasticity of Demand2.6Income Elasticity of Demand2.7Consumer Surplus2.8Producer Surplus2.9Market Equilibrium and Efficiency