Already have an account? Get multiple benefits of using own account!
Login in your account..!
Remember me
Don't have an account? Create your account in less than a minutes,
Forgot password? how can I recover my password now!
Enter right registered email to receive password!
Market demand and consumers surplus
Suppose that the market price of a cup of coffee is K£4 but the consumer was willing to pay £9 for the first unit, £8 for the second, £7 for the third, £6 for the fourth, £5 for the fifth and £4 for the sixth.
However, he pays the market price for all the six cups. The consumer thus earns a surplus on the first five units consumed i.e.
A measure of the difference between the value that consumers place on their total consumption of some commodity and the amount they actually pay for it.
For continuous demand curves, consumer's surplus can be measured by the area under the demand curve and above the price.
NB: The shaded area represents utility which the consumers received but did not pay for i.e. consumer surplus.
Mathematically it can be calculated as follows:
£5 + £4 + £3 + £2 + £1 = £15
*Weaknesses of cardinalist approach
Kinds of Bargaining arrangements Basically there are three kinds of bargaining arrangements, namely: Open Shop: In an open shop a union represents its members, but doe
What is identity economics? How does identity economics help to explain economic questions that standard economics fails to address?
Question : i) Consider a discriminating monopolist is selling a product in two separate markets in which demand functions are: P 1 = 6 - Q 1 P 2 = 18 - 2Q 2 The mono
What are the Methods of Managerial Economics The process of managerial economics deals with aspects of economics and tools of analysis, which are employed by business enterpri
Ask questiHow does economic theory contribute to managerial decisions? on #Minimum 100 words accepted#
What is Risk and Production analysis Risk analysis: Various models are used to quantify risk and asymmetric information and to employ them in decision rules to manage risk.
The Barcelona Football Club is considering the signing of a player of international fame. The problem is that the player has a reputation for having a weak knee. The probability th
explain critically growth maximisation model of morris ?
The pigou effect, also called the real balance effect, is named after the well known Cambridge school economist Arthur Cecil pigou who had first clearly formulated the relationship
Individual firm and market supply curves The quantities and prices in the supply schedule can be plotted on a graph. Such a graph is called the firm supply curve. A fir
Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!
whatsapp: +1-415-670-9521
Phone: +1-415-670-9521
Email: [email protected]
All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd