A linear demand curve is a line representing the relationship between the demand for a product or service and its price. Everyone knows that sales are proportional to price: The more you charge for an ...

Consumer surplus is the amount exceeding an equilibrium price the consumer is willing to pay. The equilibrium price is an idealized price, in which the demand for the good equals its supply. If the ...

The consumer surplus increases as the price of a good falls and decreases as the price of a good rises. It's depicted visually by economists as the triangular area under the demand curve between the ...