Consumer and Producer Surplus

Transcript: 1 What exactly is consumer surplus 2 Suppose I want a computer 3 because it gives me a happiness of 700. 4 I go to the market and realize I can buy it at just 500. 5. 6 Woohoo 200 of net happiness. This is my consumer surplus. 7 On the demand curve, 8 Though everyone pays the same price at 500, 9 different consumers have different willingness to pay. 10 Im willing to get the computer at 700. 11 It costs only 500. 12 My surplus is 200. 16 Then another guy is willing to pay 6