How to calculate Consumer Surplus Consumer surplus is an economic measurement to calculate the benefit (i.e. surplus) of consumers are willing to pay for a good or service versus its market price. The consumer surplus formula is based on an economic theory of marginal utility. This theory explains that spending behavior varies with the preferences of...
What is Gross Domestic Product (GDP)? Gross Domestic Product (GDP) is the monetary value, in local currency, of all final economic goods and services produced within a country during a specific period of time. It is the broadest financial measurement of a nation’s total economic activity. The total goods and services bought by consumers encompasses...