This theory was developed by the great economist Marshal. The demand function reveals the relationship between the quantities that the people would buy at a given price.

**Consumerâ€™s surplus:**

This theory was developed by the great economist Marshal. The
demand function reveals the relationship between the quantities that the people
would buy at a given price. It can be expressed as *p* = *f* (*x*)

Let us assume that the demand of the product *x* = *x _{0} * when the price is

It is represented in the following diagram

Mathematically the Consumerâ€™s Surplus (CS) can be defined as

CS = (Area under the demand curve from *x* = 0 to *x* = *x*_{0} ) â€“
(Area of the rectangle OAPB)

**Example 3.27**

The demand function of a commodity *is y* = 36 âˆ’ *x*^{2} .
Find the consumerâ€™s surplus for *y*_{0} = 11

*Solution:*

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12th Business Maths and Statistics : Chapter 3 : Integral Calculus - II : Integration: Consumerâ€™s surplus | Example Solved Problems with Answer, Solution, Formula

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