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Customer surplus is the contrast between the price at which a customer buys an item and the price they are willing to pay for the item. For example, if a customer is willing to spend upwards of $15 on an item, but in reality they spend $10, the consumer surplus would be the difference at $5. On the supply and and demand graph, consumer surplus exists between the demand curve and the equilibrium point. If the price of a good increases, it leads to a fall in customer surplus. This occurs because customers are likely to stop buying the good all together if the price increases. This leads to a fall in consumer surplus. Alternatively, if the price of a good decreases, it leads to a rise in customer surplus. Cheaper prices lead to a higher demand. I've experienced consumer surplus in my own life when my dad's car completely broke down out of the blue. When this happened a few months ago, the prices for cars were extremely high. But unfortunately, we were in desperate need for a car, so he bought one. Even though it wasn't his dream price, the utility element was way more important than the huge price tag. This is considered a price floor and it ultimately reflects a drop in consumer surplus.