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Consumer Surplus Excel Template: Visit: Email

The document provides examples of calculating consumer surplus using the formula: Consumer Surplus = Maximum Price Willing to Pay - Actual Price. It gives data for several products - an auto dish cleaner, TV, and high-tech car - and calculates the consumer surplus in each case. It also provides a full example using demand and supply curves defined by equations to calculate consumer surplus as $7,500.

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Mustafa Ricky Pramana Se
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243 views

Consumer Surplus Excel Template: Visit: Email

The document provides examples of calculating consumer surplus using the formula: Consumer Surplus = Maximum Price Willing to Pay - Actual Price. It gives data for several products - an auto dish cleaner, TV, and high-tech car - and calculates the consumer surplus in each case. It also provides a full example using demand and supply curves defined by equations to calculate consumer surplus as $7,500.

Uploaded by

Mustafa Ricky Pramana Se
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as XLSX, PDF, TXT or read online on Scribd
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Consumer Surplus Excel Template

Visit: www.educba.com
Email: info@educba.com
A company came up with new product that is auto dish cleaner, the company had
conduct various market research and finalize its maximum price willing to pay $1,250
whereas the actual price of the product is $750.

Maximum Price Willing to Pay $ 1,250.00


Actual Price $ 750.00

we will calculate consumer surplus using below formula


Consumer Surplus = Maximum Price Willing to Pay – Actual Price

Consumer Surplus $ 500


Suppose, a consumer wants a television with 44 inches LED TV with HD quality and
he is willing to pay $1,500 for it. He went to an electronics store and found that
television with features he wanted with a price of $1,200.

Maximum price willing to pay $ 1,500.00


Actual Price $ 1,200.00

we will calculate consumer surplus using below formula


Consumer Surplus = Maximum Price Willing to Pay – Actual Price

Consumer Surplus $ 300.00


A consumer wants to buy high-tech car with all advanced features and he is ready to pay
$1,000,000 which is the highest price among the customers and other customers are
willing to pay only $800,000, Market price as per demand supply meet is $800,000.
As per this price, car demand is 20 in equilibrium demand.

Maximum price willing to pay $ 1,000,000.00


Market Price $ 800,000.00
Quantity 20

we will calculate consumer surplus using below formula

Consumer Surplus Formula = ½ *


(Maximum price willing to pay –
Market Price) * Quantity

Consumer Surplus $ 2,000,000


Suppose, a company wants to calculate consumer surplus with the demand
function i.e. QD which is (-0.06x + 60) and supply function QS is 0.06x.

Quantity (x) Demand curve Supply curve


(-0.06x+60) (0.06x)

0.00 $60.00 $0.00


60.00 $56.40 $3.60
120.00 $52.80 $7.20
150.00 $51.00 $9.00
180.00 $49.20 $10.80
210.00 $47.40 $12.60
250.00 $45.00 $15.00
300.00 $42.00 $18.00
350.00 $39.00 $21.00
380.00 $37.20 $22.80
420.00 $34.80 $25.20
460.00 $32.40 $27.60
500.00 $30.00 $30.00
600.00 $24.00 $36.00
740.00 $15.60 $44.40
890.00 $6.60 $53.40
940.00 $3.60 $56.40
1,000.00 $0.00 $60.00

Maximum price willing to pay $60.00 when demand is highest


Market price $30.00 when demand = supply
Demand quantity at equilibrium 500.00

we will calculate consumer surplus using below formula


Consumer Surplus Formula =
½ * (Maximum price willing
to pay – Market Price) *
Quantity

Consumer Surplus Formula $7,500.00

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