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Welcome to the Q&A for ECN/APEC 2010, where you can ask questions and receive answers from your fellow students, the TA, and your professor.

Please only ask questions about the material for the course. Try to create discussions about the material we see in class, instead of just thinking of economics in general (this is an introduction to microeconomics class, not a policy or government class).

For questions and discussions about course organization or other course related topics, come see us after class or during office hours.

Feel free to discuss quiz questions on the Q&A, but do not provide direct answers to quiz questions before the quiz's due date.

How to calculate consumer surplus?

+1 vote
11 views
This is especially for Chapter 11 &13. I don't get how to calculate consumer surplus. Like calculating how much profit a firm would be making in profit maximization. Also, in monopoly. I am a bit confused. I think i am mixing it all up.
asked Apr 30 by canvas-0beab539b2710 (387 points)

2 Answers

–1 vote
consumer surplus is the difference between the total amount consumers are willing or are able to pay for a good and the total amount that they actually do pay. so it would be the triangle area between the demand curve and the market price.
answered Apr 30 by canvas-98fa74eec54bd (240 points)
+1 vote
Consumer surplus is the amount that some consumers are willing to pay above the market price. its the difference between the amount the consumers are willing to pay for a good and the price they actually have to pay.

for example if you valued a good at $5, I valued the good at $8, and the market price was $4. you would have a surplus of $1, I would have a surplus of $4 and the total consumer surplus in our mini market would be $5
answered Apr 30 by canvas-9dad53739df91 (261 points)
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