🔍Consumer surplus is calculated as the area below the demand curve and above the market price.
💰Consumer surplus represents the benefits consumers gain from being able to purchase a product at a price lower than their willingness to pay.
📈In a large market, consumer surplus can be estimated to be significant, such as billions of dollars.
💡Consumer surplus can be visualized as a triangle, with the base representing the quantity consumed and the height representing the difference between consumers' willingness to pay and the market price.
🌍The coffee market in the United States is a large market, with millions of consumers and a high consumption rate, resulting in a substantial consumer surplus.