Consumer and producer surplus, Microeconomics

Evaluating the Gains and Losses from the Policies of Government: Consumer and Producer Surplus

* Review

- Consumer surplus is total benefit or value which consumers receive beyond what they pay for good.

- Producer surplus is total benefit or revenue which producers receive beyond what it cost to produce a good.

1066_consumer and producer surplus.png
* To determine welfare effect of a governmental policy we can measure gain or loss in consumer and producer surplus.

* Welfare Effects

- Gains and losses because of government intervention in the market.

1650_consumer and producer surplus1.png

Posted Date: 10/12/2012 5:59:26 AM | Location : United States







Related Discussions:- Consumer and producer surplus, Assignment Help, Ask Question on Consumer and producer surplus, Get Answer, Expert's Help, Consumer and producer surplus Discussions

Write discussion on Consumer and producer surplus
Your posts are moderated
Related Questions

The Law for Diminishing Marginal Returns - As use of an input increases in equal increments, a point will be approched at which the resulting additions to output decreases

given that a=(4;2) and b=(5;11)determine the value of x in the following equation b=3x-1/2a

Protection against dumping: It could be looked at as the export of commodities priced below cost of production. Dumping is generally looked upon as an unfair trading practice

GROWTH OF EMPLOYMENT OPPORTUNITIES: Several disquieting features are observed in the Indian labour market over the past two decades particularly during the 1990s. These are di

What does economic theory contribute to managerial economics? Explain


Q. What do you meant by Progressive Tax? Progressive Tax:Tax is considered progressive if a larger proportionate share of its total burden falls on individual'swith higher avera

characteristic of duopoly

Question: Describe the meaning of ABC inventory control and on what key premise is this system based? The finance department of Electric Corporation gathered the following i