Consumer surplus, marginal utility, and market demand

Related BrainMass Solutions

• Consumer Surplus, Producer Surplus, Consumer Deadweight Loss, and Producer Deadweight Loss

  Draw out multiple supply/demand graphs and identify (in color) where you have: 1) Consumer Surplus, 2) Producer Surplus, 3) Consumer Deadweight Loss, and 4) Producer Deadweight Loss. I. What is consumer surplus?

• "input substitution"

  If you draw this out, a demand curve, supply curve, and horizontal line indicating the market price, the triangle above the price line and below the demand curve represents the consumer surplus. I hope you can visualise this.

• Diminishing marginal utility implies

  E) have no effect on the utility per dollar spent on steak. 10) The market demand curve is the A) horizontal sum of the individual consumer demand curves. B) vertical sum of the individual demand curves.

• Consumer Choice Theory: Marginal Utility of Chicken Pieces

  504287 Consumer Choice, Individual and Market Demand Activity The table below shows the maximum amount of money you would be willing to pay for increasing numbers of chicken pieces at Fastfood: Chicken Pieces Maximum Payment 1 $2.00 2 3.80 3

• Basic Microeconomics concepts

  increase; marginal utility and consumer surplus decrease 3.quantity demanded, total utility, consumer surplus, and consumer expenditure increase; marginal utility decreases 4.quantity demanded, total utility, and consumer surplus increase; marginal

• True/False Questions

  For a risk neutral individual, there is a strictly proportional relationship between total utility and money- constant marginal utility For a risk seeker, there is a more than proportional relationship between total utility and money-hence marginal utility

• Monopolies, deadweight loss, social cost

  Because the monopolist raises the price and restricts the quantity, relative to the competitive equilibrium, consumer surplus is much smaller and producer surplus is much larger; a lot of the surplus gets transferred from the consumer to the monopolist

• Managerial Economics

  A consumer will buy products until the marginal utility per dollar spent on it equals that of any other product. Thus we divide the cost of the good by the marginal utility to find the combination that maximizes utility per dollar.

• Microeconomics Graphs and Supply Curves

  Consumer surplus and taxation; marginal utility; luxury goods