Consumer and producer surplus, Microeconomics

Assignment Help:

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


Related Discussions:- Consumer and producer surplus

Long period analysis, LONG PERIOD ANALYSIS: Long period refers to a ti...

LONG PERIOD ANALYSIS: Long period refers to a time when all the factors are variable. Earlier in the short period analysis, we had considered capital (K) to be fixed factor. H

Consumer behaviour, discuss how economic theory of marginal utility explain...

discuss how economic theory of marginal utility explains the optimum pattern of consumption for an individual consumer

Name the five types of capital, Name the five types of capital. The fiv...

Name the five types of capital. The five types of capital are:  natural capital, manufactured capital, human capital, social capital and financial capital.

Healthcare economics, #quesExamine the expenditure trends over the last 40 ...

#quesExamine the expenditure trends over the last 40 years. What are the direction and magnitude of changes in spending in and between these various categories (with the exception

Economics from a different perspective, Economics; Different Perspectiv...

Economics; Different Perspective ? Economics is the knowledge of the choices taken by people who are faced with scarcity. ? Scarcity is a condition

Basic questions to be answered by economic institution, What are the basic ...

What are the basic questions to be answered by economic institution? Four fundamental questions should be answered by any economic institution as: a. What goods and services

Law of demand, The price of petrol fell during the past year. a. Explain...

The price of petrol fell during the past year. a. Explain why the law of demand applies to petrol just as it does to all other goods and services. b. Explain how the substitu

Internal and external economies of scale, Internal and external economies o...

Internal and external economies of scale: Internal economies of scale are the advantages or benefits that the firm enjoys as it expands its size or increases its scale of ope

Supply, composite supply v/s joint supply

composite supply v/s joint supply

Production, what is fixed and variable inputs with more explanation

what is fixed and variable inputs with more explanation

Write Your Message!

Captcha
Free Assignment Quote

Assured A++ Grade

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!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd