Question

Explain the theory of “consumer’s surplus” .

Answer 1

There are numerous ideas in economic theory.

Among all, the concept regarding consumer’s surplus is an important one especially in terms of welfare economics and demand.

It is very much helpful in explaining the gap that exists between total utility received by consumption of a certain commodity and total value of money.

It is very much important for small business owners as consumers who enjoy large benefit from purchases made are more likely to purchase them again in the long run