Who receives consumer surplus in a market?

Consumer surplus refers to the difference between what consumers are willing to pay for a good or service and what they actually pay. It represents the benefit that consumers receive when they purchase a product for less than the maximum price they are prepared to pay.

In a market, the buyer benefits from this surplus because they enjoy a higher utility or satisfaction from the purchase at a market price that is lower than their personal valuation of the good. For example, if a buyer is willing to pay $50 for a product but buys it for $30, the consumer surplus for that transaction is $20. This surplus is considered a gain to the buyer because they have effectively paid less than their maximum willingness to pay.

While sellers, governments, and producers are important players in the economy, consumer surplus specifically pertains to the benefits received by buyers in the marketplace. Thus, understanding consumer surplus allows one to analyze consumer behavior and market efficiency.