CONSUMER SURPLUS: The satisfaction that consumers obtain from a good over and above the price paid. This is the difference between the maximum demand price that you would be willing to pay and the price that you actually pay. For most consumers, under most circumstances, the demand price is greater than the price paid. Even competitive markets overflowing with efficiency generate an ample amount of consumer surplus. See also | satisfaction | demand | demand curve | demand price | price | competitive market | efficiency | producer surplus | diamond-water paradox |
