What Causes Consumer Surplus To Occur? Find The Answer Here
YOGYAKARTA What is a consumer surplus? What are the causes of the consumer surplus? Let's see the explanation.
Consumer surplus is a form of oversatisfaction enjoyed by consumers or customers. Consumer surplus can occur when the price of a product or service is lower than the highest price that consumers are willing to pay.
The following is a more detailed explanation of what the consumer surplus is and its causes.
Quoted from Investopedia, the consumer surplus is an economic measurement of the benefits of consumers resulting from market competition.
Consumer surplus can be interpreted as additional satisfaction that consumers get from one unit of goods or services.
In a book entitled Micro Economy compiled by Sugiarto Et Al, when there is a consumer supply, the satisfaction obtained by consumers is always greater than the payment they spend.
For example, a customer goes to a fruit shop to buy wine. Because they have a lot of enthusiasts, these customers do not mind buying wine at a price of 50,000 per kg. However, in the fruit store, it is found that the price of wine is only 40,000 per kg. Thus, consumers get a surplus of IDR 10,000.
This condition will occur until a balance condition is achieved, because at that time the price that consumers are willing to pay is the same as the market price.
From the explanation above, it can be concluded that the consumer surplus is a measure of benefit, either in the sense of money, welfare, or satisfaction, which is obtained by a person as a result of buying and consuming goods or services.
Adapting Indeed, here are some things that can lead to a consumer surplus:
In Irma Yuliani's book Introductory Economic Sciences, the consumer surplus can be calculated with the following formula:
Consumer surplus = Benefits of Marginal Prices.
Meanwhile, graphically, how to calculate consumer surplus can be done by looking for areas below the demand curve and above the price paid. The formula is as follows:
Composite surplus = (1/2) x Qe x P
Information:
This is information about the causes of the consumer surplus. Hopefully this article can add insight to the loyal readers of VOI.ID.