This blog has been created to provide an area for economics students to read about how economics impacts daily life. It is especially useful for students to understand the application of macroeconomics as communicated through the media and governmental websites.

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Brief description: The consumer surplus is the benefit consumers gain from being willing to pay more than the equilibrium market price.

Detailed description: The consumer surplus is shown by the area between the equilibrium price and the demand curve. A rise in price will reduce consumer surplus and increase producer surplus.