The following article will guide you to learn about how does a market system work. Let us take a few examples to show how such a system might work. We can start with an increase in demand. Assume that there is an increase in the birth rate in India. Other things being equal, this will mean that producers of products [...]
In this article we will discuss about the concept of consumer’s surplus. Also learn about the difficulties involved in measuring consumer's surplus. Concept of Consumer’s Surplus: Introduction, consumer's surplus was introduced in economics by Alfred Marshall, although the use of the concept goes back at least to the Freanch economist Dupuit writing in the first half of the nineteenth century. [...]
In this article we will discuss about the theoretical and practical uses of the concept of consumers surplus. The uses are: 1. Distinction between Value-in-use and Value-in-Exchange 2. Importance in Welfare Economics 3. Comparison of Gains from the International Trade 4. Comparison of Living Conditions 5. Useful to a Monopolist 6. Environmental Benefits to Consumers 7. Practical Importance in Public [...]