Consumer surplus, Microeconomics

Assignment Help:

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 


Related Discussions:- Consumer surplus

Combined finances of union and states, COMBINED FINANCES OF UNION AND STAT...

COMBINED FINANCES OF UNION AND STATES: Taxes on goods and services are levied in India in various forms and at different levels of Government, Centre, states, and local bodies

Find the highest interest rate, Find the highest interest rate: There ...

Find the highest interest rate: There are 2 entrepreneurs, Sally and Paul.  The return to their projects are given by: To finance the project, each entrepreneur needs

Welfare economics, Prove the theory of second best with the help of a diagr...

Prove the theory of second best with the help of a diagram

Theory of production, when total production fall what,s the status of avera...

when total production fall what,s the status of average product and marginal product

Consumer behaviour, compare and contrast between cordinal and ordinal appr...

compare and contrast between cordinal and ordinal approaches

Output in short run, Selecting Output in Short Run * We will combine pr...

Selecting Output in Short Run * We will combine production and cost analysis with demand to determine output and profitability. A Competitive Firm Making Positive Profit

Nursing, Questions 1. Mrs Holt, 85 years old, has been admitted to acute ca...

Questions 1. Mrs Holt, 85 years old, has been admitted to acute care following a fall resulting in a fractured femur. She is a widow and lives alone with her three cats for compa

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