Consumer surplus. True or False Qestion?

Question

Q: Consumer surplus is the benefit consumers get from consuming output in excess of what it costs to buy this output.

ok, that just totally confuses me.. lol ..so, what i know is that, consumer surplus is the difference between the price consumers are willing to pay and the actual price..

example: koolaid costs a few cents, but id be willing to pay 50 bucks for it.. so the consumer surplus (the benefit) is huge from buyin this product... for me at least

so, the above statement is true.. it just sounds alot more confusing... i think lol

any other explanations? or could someone even direct me to a site where i can check out a graph? i couldnt find any useful ones online. thanks!

Answer 1

You have a perfect understanding of this concept. For more information, you can click on the Wikipedia link.