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Consumer Surplus and Demand Assignment Help

Consumer Surplus and Demand Homework Help for Ending Homework Problems

Consumer surplus is measured on a demand and supply curve chart. Students are seen to be confused when it comes to the demand curve section. Knowing this diagram or chart is important as it provides valuable information about consumer surplus which just makes the concept easier for one to understand.

Consumer surplus and demand homework help explain this using practical example. We will get to know about all this here, but before that, we will go through certain definitions which will help in understanding it better.

What is consumer surplus?

The consumer surplus concept becomes useful to look at when you go to the market and notice that there is a difference between value you place on that commodity and price you pay for it in the market. In other words, it is the difference between actual price which consumers pay and maximum price the consumer is willing to pay for that product. To know more order our consumer surplus and demand homework help.

Economic welfare and consumer surplus

  • Consumer Surplus is the measurement of the welfare which people gained from the consumption of commodities and services
  • It is properly defined as the difference which is found between total amount which consumers have the ability to pay or are willing to pay for a particular product or service and total amount consumers actually pay for the goods.
  • It is shown in diagram, above price, and under demand curve

To gather more information on this check our consumer surplus and demand assignment help.

Price elasticity of demand and consumer surplus

Below given are the reasons how it is affected by elasticity of demand curve. The reasons are:

  1. When demand for any particular service or product is perfectly elastic, consumer surplus becomes zero as the amount which is paid by the people exactly matches the amount which they will pay willingly.
  2. When it is perfectly inelastic, consumer surplus becomes infinite. In this scenario, there is no respond from demand when there is change in price. Irrespective of price the demanded quantity remains same.
  3. The majority of market demand curves are under the assumption of downward sloping. When demand is seen to be inelastic, consumer surplus has a greater potential; there will be some buyers who will be willing to give a higher price for continuing the consumption of the commodity. Businesses generally raise price when demand is seen to be inelastic as they can easily turn the consumer surplus to producer surplus.

This is just a summary which is given here. For a full detailed explanation see our consumer surplus and demand assignment help.

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