What Is Consumer Surplus?

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What Is Consumer Surplus?

Рет қаралды 137,222

6 жыл бұрын

Consumer surplus is the consumer's gain from exchange. It's the difference between the maximum price that the consumer is willing to pay for a given quantity, and the market price the consumer actually has to pay. Total consumer surplus is the sum of the consumer surplus of all buyers.
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Пікірлер: 50

@tazimmahta7625 3 жыл бұрын

Awesome.... In Just 2 mintues you explained great.. Thanks.... :))

@Guessnought 3 жыл бұрын

i got mixed up whenever they mention marginal value in the book. this ironed it out so i could actually learn

@dograclicksvishalgupta3408 2 жыл бұрын

Thanks alot for clearing my concept so easily.

@RankaNikunj 6 жыл бұрын

Please make a video on India's currency Demonization. How it affected our Economy?

@danielle-balogh1575 5 жыл бұрын

Listen indians. Go away. No one cares about your country ok.

@faizfadhlirahman7955 4 жыл бұрын

@@danielle-balogh1575 Be wise bro.

@watermelon2223 2 жыл бұрын

@@danielle-balogh1575 how rude

@soulkombat1823 2 жыл бұрын

@@danielle-balogh1575 😂😂 u don’t know about india and u are talking rubbish first go and tale care urslef bokkada person

@nicholas4915 4 жыл бұрын

best explanation in the youtube

@PankajSharma-mv4nu 2 жыл бұрын

That was a great explanation 👍

@oluwanifemiogundeko5870 3 жыл бұрын

What's the name of the track in the background during the explanation?

@zachary811 5 жыл бұрын

Excellent!!!

@sidhant4411 6 жыл бұрын

Informative video

@AbdulMajid-hq9nn 6 жыл бұрын

Very nice

@ahmadbiztech 3 жыл бұрын

thank you. this helped me understand this

@hej-wd4es 3 ай бұрын

Plz nake these types of videos more and more

@dgfcl56ify 3 жыл бұрын

Thank you!!!!

@jaycellangay5795 2 жыл бұрын

Thank you😊

@omdobariya7971 Жыл бұрын

Great, I liked it...

@alireza_94 3 жыл бұрын

Great

@whatfor5 6 жыл бұрын

Okay, great, but what does that mean? The number doesn't really seem to relate or correlate to anything. It is just the area under an arbitrary curve which hypothetically has no end point and typically isn't linear. So what of relevance does it actually tell you?

@viviansoza4834 3 жыл бұрын

this is exactly what I'm trying to figure out at the moment

@FlamingBasketballClub 6 жыл бұрын

So consumer surplus is essentially the difference of what consumers paid for goods and services and the market price for those goods and services?

@michaelspence2508 6 жыл бұрын

That's my guess. It's uncaptured potential revenue.

@FlamingBasketballClub 6 жыл бұрын

@@michaelspence2508 Makes sense

@sickomode2345 6 жыл бұрын

No it is the difference between the maximum price a consumer wants to pay and the price he actualy pays. In most cases there is no difference between what the consumers pay and the marketprice. For example the maximum price that you are willing to pay for a brick of milk might be 5$ while the price you pay for it (market price) is only 2$. Then the consumer surplus would be 3$.

@michaelspence2508 6 жыл бұрын

@@sickomode2345 but if you're willing to pay $5 and the price is only $2 than that's $3 of revenue the seller could have had

@sickomode2345 6 жыл бұрын

@@michaelspence2508 true

@vcudderisback9258 3 жыл бұрын

they should really redo the intro in 60 fps

@cherylm2C6671 2 жыл бұрын

Is this what coupons do? And is this why you can find a $50 item online for $1500? Is this what bitcoin does?- sorry, just discovering this!

@MarginalRevolutionUniversity 2 жыл бұрын

Very perceptive comment! What you're describing is called price discrimination and it is related to consumer surplus. If you'd like to learn more, start here: mru.org/courses/principles-economics-microeconomics/price-discrimination-examples-airlines-arbitrage The video after that one then gets into the relation with consumer surplus. Best, Roman

@cherylm2C6671 2 жыл бұрын

@@MarginalRevolutionUniversity Thank you for that link to the series. I have to view that again-but it makes sense to me- where was this 20 years ago?!. I have long held that manufacturers and wholesalers have more stake in dollar stores or other Unit-Currency shops- than the conventional market. Sometimes classified as thrift stores, dollar stores seem to actually increase sales on conventional supermarket shelves- the most expensive real estate in the world. It may very well work internationally. I think stores like Aldi use this perception well. By limiting 'impulse items' to specific aisles and eliminating brand conflict in the rest of the store, it offers a section that meets 80% of what shoppers perceive as 'groceries'. The impulse areas become perks that lend an appearance price discrimination to both groups of shoppers. Covid has created a population of shoppers that will pay a higher price yet for convenience shopping, which eliminates so much shrinkage that it is probably here to stay. Warehouses (and loyalty coupons) can now internalize BOS arbitrage and thrift and upsell goods much like the classes of an airline.

@cherylm2C6671 2 жыл бұрын

@@MarginalRevolutionUniversity Roman, Thank you for this resource!

@TheGerogero 6 жыл бұрын

Combine price discrimination techniques designed to extract as much consumer surplus as possible along with consumerist propaganda and you go a long way in explaining the shrinking middle class.