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

Teacher-wellston high school, When the curve that envelops the sweries of p...

When the curve that envelops the sweries of possible short-run average total cost curves is horizontal, this means that they are a. economies of scale, b. dieconomies of scale, co

Recent development of demand theory, RECENT DEVELOPMENT OF DEMAND THEORY: ...

RECENT DEVELOPMENT OF DEMAND THEORY:  The basic theory of consumer behaviour discussed in the previous unit can be extended in many directions, and can be applied to cover opt

RESOURCE MARKETS, 1. What is a resource market? 2. Describe resource deman...

1. What is a resource market? 2. Describe resource demand and resource supply. 3. Define derived demand. 4. Describe the resource market demand and supply curve. 5. Define a te

Oligopoly, criticism of cournot model

criticism of cournot model

Visit to village panchayat fo data agriculture based project, about visit t...

about visit to village panchayat fo data agriculture based project

Effects of advertising on the demand curve, The Effects of Advertising on t...

The Effects of Advertising on the Demand Curve: Advertising targets to: • Change the slope of the demand curve which means make it more inelastic. This is done by generat

Factor markets, A firm in a perfectly competitive product market takes the ...

A firm in a perfectly competitive product market takes the price of the product as given. Similarly, a firm in a perfectly competitive factor market takes the price of the factor

Unemployment, Unemployment: Unemployment refers to a situation where p...

Unemployment: Unemployment refers to a situation where people who are willing and able to work do not find jobs at the existing wage rate.For a person to be referred to as une

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