Smart Grid Optimization
Consumer surplus is the difference between what consumers are willing to pay for a good or service and what they actually pay. This concept illustrates the benefit consumers receive when they purchase a product for less than their maximum willingness to pay, reflecting the value of their satisfaction or utility gained from the purchase. In electricity markets, consumer surplus plays a vital role in assessing the efficiency of market structures and the effectiveness of clearing mechanisms.
congrats on reading the definition of consumer surplus. now let's actually learn it.