Consumer surplus, Microeconomics

Consumer Surplus 

-Difference between maximum amounts a consumer is wishing to pay for a good and amount actually paid.

1192_consumer surplus.png

The stepladder demand curve is converted into a straight line demand curve by making the units of good smaller.
1573_consumer surplus1.png

Combining consumer surplus with aggregate profits which producers obtain we can evaluate:

  1) Benefits and Costs of different market structures

  2) Public policies which changes the behavior of consumers and firms 

Posted Date: 10/10/2012 7:45:57 AM | Location : United States







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

Write discussion on Consumer surplus
Your posts are moderated
Related Questions
Define the price ceiling A price ceiling is a highest price that sellers can charge for a product.

examples of quantity demand when prices increase

"price is becoming cheaper,yet the demand for car is not rising".does it mean law of demand is not operative?

explain and illustrate the changing demand for big mac using indefference curve and budget line

ADMINISTRATIVE REFORMS - ECONOMIC POLICY: During the last few decades, phenomenal changes are taking place at a fast rate in the field of science and technology as well as in


what is externalities and market inefficiency

Sally recently finished her full-time training and received certification as a nurse’s aid at the end of August. She sent out applications to prospective employers during the last

How did fixed exchange rates and the Golden Standard affect the U.S. economy as well as other countries.

1. Discuss how banks make money, and are structured in respect to Asset, Liability and Capital Management – give examples.