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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
Strictly give the diff. btw the theory of reciprocal demand & theory of comparative advantage
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What is the difference between price value and price level? Price value is the value of commodity bought by the consumer at a certain price from the market, while, price level
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Five uses of elasticity on the Public Sector and five uses of elasticity on the Private Sector.
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