# Consumer Surplus

Consumer surplus is attained when the consumer is willing to pay more for each of those units than she actually paid. So then we can say she recieved more value than the cost to her of buying them. graphically consumer surplus is the area beneath the demand curve and above the price paid. So when the consumer is " willing" to pay more for the same good doesnt she has to buy less quantity of it? Because the negative slope of demand curve and law of demand says that the quantity demanded reduces as the price increases. So How Is There A More Value / surplus for the consumer in higher pricing if she has to settle for LESSER quantity of the same good when she can buy more of it when the price falls. Graphically speaking the region above the actual price paid and below the demand curve is the area of consumer surplus. But doesnt that area consist of lesser quantity of goods demanded than the actual units demanded? So I am in trouble understanding how there is a “surplus” in value for the consumer. I hope I am clear in my question raised. Apologies for any language mistakes. Thanks in advance.

Mary would be willing to pay \$100 apiece for five pairs of shoes. Jane would be willing to pay only \$90 apiece for three pairs of the same shoes. The equilibrium quantity for these shoes is 200 pairs, and the equilibrium price is \$60 per pair.

Mary, therefore, has a surplus of \$40 per pair (\$100 – \$60) for the five pairs she buys: \$200 total. Jane has a surplus of \$30 per pair (\$90 – \$60) for the three pairs she buys: \$90 total. Mary wouldn’t have to settle for a lower quantity of shoes if they were priced at \$100: she’d be willing to buy five pairs and Jane wouldn’t be willing to buy any (she’ll only spend \$90 per pair, not \$100). So, when the price drops to \$60 per pair, both Mary and Jane benefit: they get the quantity they want at a lower price than they’d be willing to spend.

Simply put, consumer surplus is the maximum amount you’re willing to pay for a commodity minus the amount it actually costs.