How to calculate Consumer surplus
The Consumer surplus formula, with plain worked examples you can check yourself.
Consumer surplus = W − P
Worked examples
W = 100 · P = 80Consumer surplus = 20
W = 60 · P = 40Consumer surplus = 20
W = 70 · P = 40Consumer surplus = 30
How to use it
- Write down the values for each letter in the formula.
- Do the brackets first, then divide or multiply.
- Check the units before you compare results.
- Compare the answer with last period or with a competitor to see if it is good or bad.
This formula belongs to Market Structures.
Related terms
Practice Consumer surplus with real numbers
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