The answers are:
- Consumer surplus is: equal to the difference between the maximum price a buyer is willing to pay and the market price
- Consumer surplus is shown graphically as: the area under the demand curie and above market price
Consumer surplus is the difference between the maximum price customers are willing to pay for a product or service, and the actual price for the product or service. The demand curve usually has a downward slope, since customers will always be willing to buy a larger quantity given a lower price. The area beneath the demand curve and above the equilibrium price is the consumer surplus.