Let us make an in-depth study of Consumer Surplus:- 1. Introduction to Consumer Surplus 2. Explanation of the Concept of Consumer Surplus 3. Definition 4. Assumptions 5. Explanation of the Law 6. Diagrammatic Representation 7. Criticism 8. Practical Importance 9. Explanation by Prof. Hicks. Introduction to Consumer Surplus: The doctrine of Consumer's Surplus which occupies an important place in the [...]
The following article highlights the eight theoretical and practical uses of consumer’s surplus. Use # 1. Distinction between Value-in-Use and Value-in-Exchange: Consumer's surplus bring into four distinction between the use value (i.e., utility) and the exchange value (i.e., the market price) of a thing. The former is reflected in the individual demand price and the latter in the market price. [...]
The below mentioned article provides an overview on consumer surplus. Definition Of Consumer’s Surplus: The demand curve for a normal good is downward sloping due to the law of diminishing marginal utility. From the negative slope of the demand curve Alfred' Marshall developed a famous concept, viz., consumer's surplus. In the language of Paul Samuelson, "We enjoy consumer surplus basically [...]