If you as a consumer was willing to pay up to $ 200.00 per custom tailored dress and buy one for $ 150, the difference of $ 50 it represents consumer surplus. Meanwhile, if the tailor was willing to accept at least $ 100 and manages to sell the product for $ 150, a difference of $ 50 represents a surplus for the tailor.
During the back to school shopping, my wife and I we had given a budget to my eldest daughter of $ 75 for the purchase of the backpack that she had asked. Arriving at the store that she selected, the vendor told us about the different sales they had in store. The backpack was on sale for $ 37.50 (50%), which represent me $ 37.50 as consumer surplus.
During the back to school shopping, my wife and I we had given a budget to my eldest daughter of $ 75 for the purchase of the backpack that she had asked. Arriving at the store that she selected, the vendor told us about the different sales they had in store. The backpack was on sale for $ 37.50 (50%), which represent me $ 37.50 as consumer surplus.