How Much Is It Worth to You?

We've learned that people only buy things when the benefit they get from it is more than the price they pay for it. But there can be a big gap between how much you're willing to pay and the cost to the seller. We call this economic surplus, both the buyer and the seller are better off from having traded with each other. How much something is worth to you is very different to how much you paid for it, or even how much you could sell it for.