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Excess of the price which a consumer would be willing to pay rather than go without think over that which he actually does pay who among the following has given this statement about consumers surplus
a. Alfred Marshall
b. Lionel Robins
c. J R hicks
d. edge worth?
a. Alfred Marshall
b. Lionel Robins
c. J R hicks
d. edge worth?
Most Upvoted Answer
Excess of the price which a consumer would be willing to pay rather th...
Alfred Marshall on Consumer Surplus:
Consumer surplus is a concept introduced by economist Alfred Marshall. He defined consumer surplus as the excess of the price which a consumer would be willing to pay, rather than go without a good or service, over the actual price that the consumer pays for it. This concept helps us understand the value that consumers derive from their purchases.
Explanation of Consumer Surplus:
- Consumer surplus is based on the idea that consumers have a maximum price they are willing to pay for a good or service, which is often higher than the actual price they end up paying.
- When consumers are able to purchase a good below the maximum price they are willing to pay, they experience consumer surplus. This represents the value they receive beyond what they actually spend.
- Consumer surplus is important in understanding consumer behavior and preferences. It helps economists analyze demand curves and pricing strategies by businesses.
Significance of Consumer Surplus:
- Consumer surplus is a key factor in determining market efficiency and welfare. It represents the benefit that consumers receive from the market in terms of the difference between what they are willing to pay and what they actually pay.
- Understanding consumer surplus helps policymakers evaluate the impact of interventions such as price controls, taxes, or subsidies on consumer welfare.
In conclusion, Alfred Marshall's concept of consumer surplus provides valuable insights into consumer behavior, market efficiency, and welfare. It is a fundamental concept in economics that helps us understand the value that consumers place on goods and services.
Consumer surplus is a concept introduced by economist Alfred Marshall. He defined consumer surplus as the excess of the price which a consumer would be willing to pay, rather than go without a good or service, over the actual price that the consumer pays for it. This concept helps us understand the value that consumers derive from their purchases.
Explanation of Consumer Surplus:
- Consumer surplus is based on the idea that consumers have a maximum price they are willing to pay for a good or service, which is often higher than the actual price they end up paying.
- When consumers are able to purchase a good below the maximum price they are willing to pay, they experience consumer surplus. This represents the value they receive beyond what they actually spend.
- Consumer surplus is important in understanding consumer behavior and preferences. It helps economists analyze demand curves and pricing strategies by businesses.
Significance of Consumer Surplus:
- Consumer surplus is a key factor in determining market efficiency and welfare. It represents the benefit that consumers receive from the market in terms of the difference between what they are willing to pay and what they actually pay.
- Understanding consumer surplus helps policymakers evaluate the impact of interventions such as price controls, taxes, or subsidies on consumer welfare.
In conclusion, Alfred Marshall's concept of consumer surplus provides valuable insights into consumer behavior, market efficiency, and welfare. It is a fundamental concept in economics that helps us understand the value that consumers place on goods and services.
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Excess of the price which a consumer would be willing to pay rather than go without think over that which he actually does pay who among the following has given this statement about consumers surplus a. Alfred Marshall b. Lionel Robinsc. J R hicksd. edge worth?
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Excess of the price which a consumer would be willing to pay rather than go without think over that which he actually does pay who among the following has given this statement about consumers surplus a. Alfred Marshall b. Lionel Robinsc. J R hicksd. edge worth? for CA Foundation 2024 is part of CA Foundation preparation. The Question and answers have been prepared according to the CA Foundation exam syllabus. Information about Excess of the price which a consumer would be willing to pay rather than go without think over that which he actually does pay who among the following has given this statement about consumers surplus a. Alfred Marshall b. Lionel Robinsc. J R hicksd. edge worth? covers all topics & solutions for CA Foundation 2024 Exam. Find important definitions, questions, meanings, examples, exercises and tests below for Excess of the price which a consumer would be willing to pay rather than go without think over that which he actually does pay who among the following has given this statement about consumers surplus a. Alfred Marshall b. Lionel Robinsc. J R hicksd. edge worth?.
Excess of the price which a consumer would be willing to pay rather than go without think over that which he actually does pay who among the following has given this statement about consumers surplus a. Alfred Marshall b. Lionel Robinsc. J R hicksd. edge worth? for CA Foundation 2024 is part of CA Foundation preparation. The Question and answers have been prepared according to the CA Foundation exam syllabus. Information about Excess of the price which a consumer would be willing to pay rather than go without think over that which he actually does pay who among the following has given this statement about consumers surplus a. Alfred Marshall b. Lionel Robinsc. J R hicksd. edge worth? covers all topics & solutions for CA Foundation 2024 Exam. Find important definitions, questions, meanings, examples, exercises and tests below for Excess of the price which a consumer would be willing to pay rather than go without think over that which he actually does pay who among the following has given this statement about consumers surplus a. Alfred Marshall b. Lionel Robinsc. J R hicksd. edge worth?.
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