Consumer surplus is the term used in the context of economics, it refers to that situation where as a consumer you end up getting more value for a product or service than you perceived. In order to understand this concept better, let’s look at some of the examples of consumer surplus –
- When you have budget of $1000 for 3D television but due to some festive season offer you get that 3D television for $600 than your consumer surplus will be $400.
- When stock market crash and the stocks which are fundamentally strong but due to pessimism are trading below their real value than for investors it is consumer surplus, same can be applied to other asset classes like gold, silver, real estate and when there is crash in these markets.
- When a student is going for coaching of physics but tutor also helps him or her in other subjects than for a student help in other subjects can be treated as consumer surplus.
- When you go at restaurant for dinner and restaurant gives welcome drink for free than that welcome drink can be regarded as consumer surplus.
- When you take internet connection at home for your official purpose but your whole family uses that internet for their benefit, like your son or daughter uses internet for visiting education websites or your wife uses it for learning various food recipes than it can be regarded as consumer surplus.
- When you go for foreign tour for 7 days but travel agency give you additional day and make it a 8 day tour package than that 1 additional day can be regarded as consumer surplus from the point of view of traveler.