Economics Articles

Learn all about the most important economics principles and concepts.

Consumer Surplus Formula

How to Calculate Consumer Surplus Consumer surplus is an economic measurement to calculate the benefit (i.e. surplus) of what 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. The theory explains that spending behavior varies with the preferences...

GDP Formula

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...

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