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Preferred term

consumer and producer surplus  

Definition

  • In economics, consumer's surplus refers to the difference between what a buyer actually pays for a product and the maximum that he would have been willing to pay. If one would have been willing to spend $40 on a shirt, but find it on sale for $10, one would realize a consumer surplus of $30 on the purchase. [Source: Encyclopedia of Business Ethics and Society; Surplus, Consumer and Producer]

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URI

https://concepts.sagepub.com/social-science/concept/consumer_and_producer_surplus

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