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

Advantages and disadvantages of a monopoly market, Problem 1: i) ‘There...

Problem 1: i) ‘There is a trade-off between inflation and unemployment.' Do you agree with this statement? Justify your example using appropriate diagrams. ii) Mauritius is

Economic growth and economic development, Economic growth and Economic deve...

Economic growth and Economic development: Economic Growth refers to an increase in real aggregate output (real GDP) reflected in increased real per capita income.A country is

Mixed economy, How solve central problem of economy in mixed economic syste...

How solve central problem of economy in mixed economic system?

Uses of national income statistics, Uses of national income statistics: ...

Uses of national income statistics: - It helps to organize economic data and activities. - It helps to classify economic activities into various segments or sectors. - It he

Home work, how do minimum units cost change with changes in fixed cost

how do minimum units cost change with changes in fixed cost

Mixed economics, Mixed Economic System and how can this system solve the ec...

Mixed Economic System and how can this system solve the economic problem, with example?

Labor , #questThe demand for and supply of labour in a certain industry are...

#questThe demand for and supply of labour in a certain industry are given by the equations Nd = 400 - 2w Ns = 240 + 2w Where Nd ( is the number of workers employers want to hire

Theory of monopolistic competition, The very name of this market type sugge...

The very name of this market type suggests that it is a combination of the monopoly and competitive firms. The characteristics of such a market are: 1. There exists large n

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