What is consumer surplus, and how is it measured

ثبت نشده
چکیده

What is consumer surplus, and how is it measured? ANSWER: Consumer surplus measures the benefit to buyers of participating in a market. It is measured as the amount a buyer is willing to pay for a good minus the amount a buyer actually pays for it. For an individual purchase, consumer surplus is the difference between the willingness to pay, as shown on the demand curve, and the market price. For the market, total consumer surplus is the area under the demand curve and above the price, from the origin to the quantity purchased.

برای دانلود متن کامل این مقاله و بیش از 32 میلیون مقاله دیگر ابتدا ثبت نام کنید

ثبت نام

اگر عضو سایت هستید لطفا وارد حساب کاربری خود شوید

منابع مشابه

The Role of a Consumer Harm Test in Competition Policy

Most competition authorities pursue a consumer standard – they seek to deliver an improvement in consumer surplus (i.e. the difference between what consumers are willing to pay and what they actually pay, aggregated across all consumers who purchase the good in question). Under this standard, if improving consumer surplus reduces profits, those lost profits are not taken into account. What do e...

متن کامل

Dilemma in two game structures for a closed-loop supply chain under the influence of government incentives

The government organizations grant incentives to promote green product consumption, improve green product quality, boost remanufacturing activities, etc. through various policies. The objective of this study is to highlight pros and cons of two incentive policies, namely (1) incentive on manufacturer’s R&D investment and (2) direct incentive to consumer based on greening level of the product on...

متن کامل

Valuation of Groundwater Resources in Agricultural uses: Bijar,Iran

The agricultural sector is of particular importance in the city of Bijar. Thus, the economic value perunit of water applid to the side effects of excessive groundwater resources in this area has a utmostimportance. Payment for estimation of water on a suitable production function was estimated revenueproducers. Therefore in this study to estimate the economic value of water resources in agricul...

متن کامل

The Value of Improved Water Quality A Random Utility Model of Recreation in the Stockholm Archipelago

This paper examines how an improved water quality affects the demand for recreation in the Stockholm archipelago. Accomplishing the improvement by reducing nutrient emissions is costly, and is economically motivated only if benefits are great enough to cause a social gain. It is thus of great importance to estimate the benefits from improved water quality. In the present study, water quality is...

متن کامل

Cost-benefit analysis involving addictive goods: contingent valuation to estimate willingness-to-pay for smoking cessation.

The valuation of changes in consumption of addictive goods resulting from policy interventions presents a challenge for cost-benefit analysts. Consumer surplus losses from reduced consumption of addictive goods that are measured relative to market demand schedules overestimate the social cost of cessation interventions. This article seeks to show that consumer surplus losses measured using a no...

متن کامل

ذخیره در منابع من


  با ذخیره ی این منبع در منابع من، دسترسی به آن را برای استفاده های بعدی آسان تر کنید

برای دانلود متن کامل این مقاله و بیش از 32 میلیون مقاله دیگر ابتدا ثبت نام کنید

ثبت نام

اگر عضو سایت هستید لطفا وارد حساب کاربری خود شوید

عنوان ژورنال:

دوره   شماره 

صفحات  -

تاریخ انتشار 2004