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Consumer Surplus
-Difference between maximum amounts a consumer is wishing to pay for a good and amount actually paid.
The stepladder demand curve is converted into a straight line demand curve by making the units of good smaller. 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
illustrate and discuss implications of various market structure(non competitive and competitive) for price determination
what is indifference curve''s theory and application
sequential game
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Demand Function The function capturing the dependent relationship between the price people are willing to pay for products or service and other factors related to that product
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