Consumer surplus
What Consumer surplus means in Economics A-Level, as defined for AQA, Pearson Edexcel.
Definitions of Consumer surplus
Exam boards and our study guides word this term in slightly different ways. Learn the version your board uses.
Check what you remember
Read the wording for your board, then hide it and explain Consumer surplus in your own words. Rough notes are fine. This is a self-check, with no mark or grade.
Reference: AQA
Captured by the firm when it charges different prices to different consumer groups, transferring it to producer surplus.
Maximised in the short run by allocative efficiency, where competition forces firms to lower prices and increase output.
The benefit that is captured by firms and converted into producer surplus when they practise price discrimination.
The benefit to consumers that is lost by those paying peak rates and converted into producer surplus by producers.
The difference between the maximum price a consumer is willing to pay and the market price they actually pay.
Topics that use Consumer surplus
- Price discrimination (AQA A-Level)
- The dynamics of competition and competitive market processes (AQA A-Level)
- How markets work (Pearson Edexcel A-Level)
Related terms
- Monopoly power
- Allocative efficiency
- Allocative inefficiency
- Arbitrage
- Dynamic efficiency
- Elasticity of demand
- Equity
- Innovation
Using Consumer surplus in the exam
Check the command word and mark scheme for your exact question. After comparing your explanation with the reference, use the term in an answer on the linked topic. This practice does not predict an exam mark.
Practise Economics questions
Create a free account to answer exam-style questions on this topic and get feedback on your answers.
A week of Premium from your first lesson · Then the free plan continues · No card, no charge