Measurement of Economic ValuesThe economic measure of the value ofecosystem goods and services is consumersurplus. This is the difference between themaximum amount an individual would bewilling to pay for a good and service andthe amount that person actually pays. Theconcept is based on the fact that somepeople are willing to pay more for a goodor service than others. Therefore, when allconsumers are charged the same price,some people pay less than what they arewilling to pay. Since these people pay less for the good than the maximum they arewilling to pay, they enjoy an increase inwell-being relative to not purchasing thegood. Consumer surplus for society as awhole is the sum of consumer surplus forall individuals.Figure 2 illustrates the concept of con-sumer surplus for a typical ecosystemgood or service. The demand curve, D,defines the quantity of the good or servicethat individuals in the aggregate demandat each price. With high prices, few indi-viduals are willing to purchase the goodand the quantity demanded is low. Asprices fall, more individuals judge thegood to be worth the price and purchaseit, thus increasing the quantitydemanded.1
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