net economic value from consumption or use of a good or service. It is the difference between the maximum that a person is willing to pay for the good or service rather than do without it, and what he/she actually spends. The adjective, “consumer” is misleading because this category of value also applies to non-consumptive uses ( e.g., observing salmon runs) and to non-use benefits ( e.g., protecting marine mammals from exploitation).
the difference between the price actually paid for a good, and the maximum amount that an individual is willing to pay for it. Thus, if a person is willing to pay up to $3 for something, but the market price is $1, then the consumer surplus for that item is $2. This measure approximates, and is bounded by, the more technically precise measures of economic benefit: compensating variation or equivalent variation.
The difference between the price a consumer would be willing to pay for a good or service and what that consumer actually has to pay. View Capstone Lesson(s) that address this concept