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Consumer Surplus

Please use an example to explain the strategies firms use to extract more consumer surplus from consumers. It should not be from a textbook.A short description will be helpful! Thank you!

My text is Microeconomic Analysis, Third Edition by Hal R. Varian.

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The response address the queries posted in 750 words with references.
//Before discussing about an example of 'Consumer Surplus' the information and cognition regarding this facet is essential. So, to begin with, we will discuss consumer surplus under the heading of introduction: //

Introduction

The wellbeing and the interest of a group of consumers is deliberated through the consumer surplus that buy a particular product at a particular price. The distinction between what the consumers are willing to pay for a unit of the product and what the consumers in fact do pay for a unit of the product is known as Consumer surplus. (Suranovic, 2004)

(Basic Concepts of Economic, 2007)

Keenness to pay for a product can be interpreted as a market demand graph for a product. The amount of the product that would be required by all consumers at each and every price that may exist is shown by the market demand graph (Suranovic, 2004).

//Above, we discussed about the consumer surplus. Moving to the next part of the directions, now, we discuss the strategies used by a firm to extract more consumer surplus from consumers.//

The strategy used by firms: Group pricing or third-degree price discrimination

The firm makes use ...

Solution Summary

The response address the queries posted in 750 words with references.

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