[header] How to calculate consumer surplus [title] Understand the law of demand. [step] Most people have heard the phrase " supply and demand " used in reference to the mysterious forces governing market economies, but many don't understand these concepts' full implications. " demand " refers to the desire for a good or service in the marketplace. 
Generally, if all other factors are equal, demand for a product will fall as its price increases. [substeps] For example, let's say that a company is about to release a new model of television.