Summary
Summary surplus
- Module
- The Role of Markets
- Institution
- OCR
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Consumer SurplusConsumer Surplus Difference :
between what consumers are willing andabletopayandwhatthey actually pay
Eftectotachangeinprice
Increase in price :
Decrease in price :
% ¥
Original :
ABP, Original :
ABR
P2 New :ACPz "
¥☒☒ ,
New :ACPz
TY
P' - - _
" - - -
Change :p ,PiCB
-
change :PiPiCB
-
, ,
Q2 Qi Q Qi Q2 Q
Evaluatetheimpactotchangeslhpria
Extent of price change
significant increase : moderate increase :
PA P
:* Many consumers are many consumers are still
"
lesswiltingtable.to REAM, uillingtabletoconsumeat
1/1/1 t
- -
p,
-
! ! Pa
,, consume at P2
p,
-1 t
;D
- - - - -
☐ ☐
,
large change in ! : =
small change in Cs
£
-
-
a, , a Q2 Q1 Q
PEDOT product
PED elastic : PED inelastic :
P P
Anincreateinpricecautes Anincreateinpricecautes
P2 P2 -
-1
t 1/1/11 ,
-1%1
amore than proportionate less than proportionate
,
p,
- - - - - - - -
- - -
p, a
" ,
p
'
"
I decrease in quantity demanded !! decreateinauantitydemanaed
! I !!
large change incs
☐
= '
smauchangeincs
Q2 Q, Q QZQI Q
lausesotashiftinswpplyordemahd
Shittinsupply : shiftier demand :
P " ˢ
s'
Anincpeateihcop-sitosi.tl Anincreafeinprice .
"
11 , Ieispeoplewillingtableto " Piton less people
-_
Pi
- - - -
t T T
-
-
-
consume atpz hiuuhgtabletoconsunre
I 1 Pz - - - -
-1 , at "
I 1 D '
I Di
' '
, pz
i
'
Q2 Q, Q Q2 Qt Q
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