Customer surplus is the difference between the amount a customer is willing to pay for a good or service and the amount they actually pay. It is a measure of consumer benefit and is used to measure the economic welfare of a market.
What is the purpose of measuring customer surplus?
The purpose of measuring customer surplus is to measure the economic welfare of a market by quantifying the benefit that customers receive from a good or service. It can be used to assess the efficiency of a market and to inform policy decisions.