Consumer surplus is an economic measurement to calculate the benefit (i.e., surplus) of what consumers are willing to pay for a good or service versus its market price. ... Since different people are willing to spend differently on a given good or service, a surplus is created.

Why is it necessary to determine the consumer surplus?

A consumer surplus happens when the price that consumers pay for a product or service is less than the price they're willing to pay. It's a measure of the additional benefit that consumers receive because they're paying less for something than what they were willing to pay.

Who benefits consumer surplus?

Explanation: Consumer surplus is the difference between the amount the consumer is willing to pay and the price he actually pays. So the direct benefit goes to the consumer.