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PS/ECON ITEM #1 June 26, 2023, WorksessionMEMORANDUM June 21, 2023, TO:Joint Economic Development & Public Safety CommitteeFROM:Susan J. Frag, Legislative AnalystSUBJECT:Executive Regulation 0423:
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How to fill out consumer surplus - definition

01
Find the market price of a good or service
02
Determine the quantity that consumers are willing to purchase at this market price
03
Calculate the area under the demand curve and above the market price to find the consumer surplus

Who needs consumer surplus - definition?

01
Economists use consumer surplus to measure the benefit that consumers receive from purchasing a good or service at a certain price
02
Policy makers may use consumer surplus to evaluate the impact of price changes on consumer welfare
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Consumer surplus is the difference between the price a consumer is willing to pay for a good or service and the actual price they pay.
Consumer surplus is not typically filed by individuals, but rather analyzed by economists and policymakers.
Consumer surplus is not filled out like a form, but rather calculated using demand curves and price data.
The purpose of consumer surplus is to measure the benefit that consumers receive from buying a good or service at a price lower than what they are willing to pay.
Consumer surplus is not reported in traditional financial statements; it is a theoretical concept used in economics.
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