{"id":28493335,"date":"2019-07-25T13:25:21","date_gmt":"2019-07-25T13:25:21","guid":{"rendered":"https:\/\/nav.al\/?p=28493335"},"modified":"2025-11-07T08:13:52","modified_gmt":"2025-11-07T16:13:52","slug":"surplus","status":"publish","type":"post","link":"https:\/\/nav.al\/surplus","title":{"rendered":"Consumer Surplus: Getting More Than You Paid For"},"content":{"rendered":"\n<p><strong>Naval:<\/strong> <a href=\"https:\/\/en.wikipedia.org\/wiki\/Economic_surplus\">Consumer surplus and producer surplus<\/a> are important concepts. Consumer surplus is the excess value you get from something when you pay less than you were willing to pay.<\/p>\n\n\n\n<p>I get a lot of joy out of my morning Starbucks coffee. Obviously I\u2019ve made some money. So if my coffee cost $20, I would pay it.<\/p>\n\n\n\n<p>But Starbucks doesn\u2019t know that. They can\u2019t price the coffee at $20 just for me, because they\u2019re selling the exact same product to others. So I\u2019m getting a lot of consumer surplus out of the coffee.<\/p>\n\n\n\n<!--more-->\n\n\n\n<p><strong>Consumer surplus is the extra value you get when you pay less than you were willing<\/strong><\/p>\n\n\n\n<p>All businesses generate consumer surplus. It\u2019s a good thing to keep in mind when someone\u2019s harping on about how evil companies are. Amazon might be a trillion-dollar company, but I\u2019ll bet they\u2019re generating trillions of dollars in consumer surplus through people\u2019s willingness to pay for convenience. A lot of people are willing to pay more than what Amazon charges.<\/p>\n","protected":false},"excerpt":{"rendered":"<p><a href=\"https:\/\/en.wikipedia.org\/wiki\/Economic_surplus\">Consumer surplus and producer surplus<\/a> are important concepts. Consumer surplus is the excess value you get from something when you pay less than you were willing to pay.<\/p>\n<p>I get a lot of joy out of my morning Starbucks coffee. Obviously I\u2019ve made some money. So if my coffee cost $20, I would pay it.<span class=\"post-more-link-before\"><\/span><a class=\"post-more-link\" href=\"https:\/\/nav.al\/surplus\"> More <i class=\"fas fa-chevron-right\"><\/i><\/a><\/p>\n","protected":false},"author":4,"featured_media":0,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"_jetpack_newsletter_access":"","_jetpack_dont_email_post_to_subs":false,"_jetpack_newsletter_tier_id":0,"_jetpack_memberships_contains_paywalled_content":false,"_jetpack_memberships_contains_paid_content":false,"footnotes":"","jetpack_publicize_message":"","jetpack_publicize_feature_enabled":true,"jetpack_social_post_already_shared":true,"jetpack_social_options":{"image_generator_settings":{"template":"highway","default_image_id":0,"font":"","enabled":false},"version":2},"jetpack_post_was_ever_published":false},"categories":[6,15],"tags":[55,47,59],"class_list":["post-28493335","post","type-post","status-publish","format-standard","hentry","category-podcast","category-wealth","tag-economics","tag-human-nature","tag-wealth-creation"],"acf":[],"yoast_head":"<!-- This site is optimized with the Yoast SEO plugin v26.9 - https:\/\/yoast.com\/product\/yoast-seo-wordpress\/ -->\n<title>Consumer Surplus: Getting More Than You Paid For<\/title>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/nav.al\/surplus\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"Consumer Surplus: Getting More Than You Paid For\" \/>\n<meta property=\"og:description\" content=\"Consumer surplus and producer surplus are important concepts. Consumer surplus is the excess value you get from something when you pay less than you were willing to pay.  I get a lot of joy out of my morning Starbucks coffee. Obviously I\u2019ve made some money. So if my coffee cost $20, I would pay it. 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Consumer surplus is the excess value you get from something when you pay less than you were willing to pay.  I get a lot of joy out of my morning Starbucks coffee. Obviously I\u2019ve made some money. So if my coffee cost $20, I would pay it. 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