Diagram Of Consumer Surplus. Refer to the following example if you need a refresher. They help us however see the differences.
In this case the firm is able to capture the entire consumer surplus. Consider market demand and supply shown in the diagram. Please note that it is critical to understand the relationship between supply and demand first in order to fully comprehend the concept of consumer surplus.
Consumers surplus is the area between the demand curve and the market price.
We can see this more clearly in the bottom diagram. Without trade the domestic price. How elasticity of demand affects consumer surplus. Refer to the following example if you need a refresher.