3 Distinguish between value and price and define consumer surplus.

Value is the benefit that a consumer could receive if they consume a certain type of goods or service. This value tend to be different between customers' situation.

Price is the amount of resources that the consumer need to sacrifice in order to obtain a certain type of goods or services.

The value of the products and services will determine the amount of money that the consumes willing to pay to acquire them. Most consumers are not willing to make a purchase if the price exceeds the perceived value.

A consumer surplus will occur if the amount of price that the consumers spend to purchase that goods is lower compared to the amount of price that they're willing to pay based on the value.