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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
elasticity of demand of a product in different market forms such as perfect competition, monoply etc.
project on visit to village for agriculturebased project
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How economic theory explain optimum pattern of consumption for an individual consumer
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