Final answer:
Consumer surplus is the area below the demand curve and above the equilibrium price, representing the economic benefit to consumers who pay less than they are willing for a product.
Step-by-step explanation:
Graphically, consumer surplus is represented by the area below the demand curve and above the equilibrium price, extending from zero to the quantity traded. It visually captures the benefit consumers receive when they are able to purchase a product for less than the maximum price they are willing to pay. The demand curve reflects the various prices consumers are willing to pay for different quantities of a good. At the equilibrium price, consumers who value the product more than the equilibrium price derive additional utility, which is measurable as consumer surplus. This area is often depicted as a triangular region on a supply and demand graph, directly under the demand curve and above the horizontal line representing the market price.
Consider a scenario where the equilibrium price of a tablet is $80, but some consumers were willing to pay $90 based on the utility they expect to receive from it. The difference between what they would have been willing to pay ($90) and what they actually paid ($80) constitutes each consumer's surplus. Hence, consumer surplus is the area labeled F in many economic diagrams, where it is shown as the triangular area above the market price and below the demand curve.