Consumer surplus is closely related to the demand curve for a product.

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Consumer surplus is the difference between the highest price a consumer is willing to pay for a product and the actual price they pay. The demand curve shows the different quantities of a product that consumers are willing and able to purchase at various price levels. Therefore, as the price of a product decreases, the consumer surplus increases because consumers are willing to pay more for the product than the actual price they are paying. This relationship between price and consumer surplus is reflected in the demand curve, which slopes downwards from left to right.

Consumer Surplus Is Closely Related to the Demand Curve for a Product