Consumer surplus - Revision history

Vipul: /* Interpretation as area */

2012-02-21T20:14:33Z

Interpretation as area

← Older revision		Revision as of 20:14, 21 February 2012
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	==Interpretation as area==		==Interpretation as area==

	~~The~~ consumer surplus across all consumers for a good at a given price can be computed as the area of the region between the demand curve and the horizontal line for that price:		Assuming the [[law of one price]] (i.e., there is a single price and all consumers pay the same price), the consumer surplus across all consumers for a good at a given price can be computed as the area of the region between the demand curve and the horizontal line for that price:

	[[File:Consumersurplus.png\|400px]]		[[File:Consumersurplus.png\|400px]]

Vipul at 16:53, 7 May 2011

2011-05-07T16:53:21Z

← Older revision		Revision as of 16:53, 7 May 2011
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	Consumer Surplus = (Total value received by consumer) - (Total cost to consumer)		Consumer Surplus = (Total value received by consumer) - (Total cost to consumer)

	The total value received by a consumer is typically approximated by the highest price the consumer would have been willing to pay for the purchase, and the total cost to the consumer is approximated by the cost of the good.		The total value received by a consumer is typically approximated by the highest price the consumer would have been willing to pay for the purchase (i..e, the [[reservation price]] -- see [[consumer's reservation price approximates consumer benefit]]), and the total cost to the consumer is approximated by the cost of the good, i.e., what the consumer paid to acquire the good.

			==Interpretation as area==

			The consumer surplus across all consumers for a good at a given price can be computed as the area of the region between the demand curve and the horizontal line for that price:

			[[File:Consumersurplus.png\|400px]]

Vipul at 01:03, 28 January 2009

2009-01-28T01:03:50Z

← Older revision		Revision as of 01:03, 28 January 2009
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	{{cost-benefit analysis ~~concept~~}}		{{cost-benefit analysis basicdef}}

	==Definition==		==Definition==

Vipul: New page: {{cost-benefit analysis concept}} ==Definition== The '''consumer surplus''' on the purchase of a good is the difference between the value the consumer places on the benefits received...

2009-01-28T01:03:16Z

New page: {{cost-benefit analysis concept}} ==Definition== The '''consumer surplus''' on the purchase of a good is the difference between the value the consumer places on the benefits received...

New page

{{cost-benefit analysis concept}}

==Definition==

The '''consumer surplus''' on the purchase of a [[good]] is the difference between the value the consumer places on the benefits received from the good, and the amount the consumer spends on the purchase.

Consumer Surplus = (Total value received by consumer) - (Total cost to consumer)

The total value received by a consumer is typically approximated by the highest price the consumer would have been willing to pay for the purchase, and the total cost to the consumer is approximated by the cost of the good.