Consumer Surplus Introduction

Consumer surplus as difference between marginal benefit and price paid

Category:

Education

Tags:

• consumer
• surplus
• marginal
• benefit

[pokecardlaza7]

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[pokecardlaza7]

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wh

at the heck?!!!!!!!!

[paresh1709]

@khanacademy : Sal, i have a doubt. on the X axis is the number of cars sold. So, u are essentially selling 1+2+3 cars at a price of $30,000 when u could have got more out of them as their buyers were willing to pay more. hence, shouldn't the consumer surplus be 30K(1st car) + 40K( 20K each for the next 2 cars) + 30K( 10K for the 3 cars) = 100K.. Sal, u gotta clear my doubt. I am gonna give u a chocolate

[Drutzie]

Thank u so much for your service......you've been a life saver

[ckreeder]

@hugodsa89 Prices determine costs. If you arbitrarily decide what your costs will be (just enough to pay ourselves, you say) society will be more poor. Note how government produces things and costs are incurred to produce those things, but no one buys or sells them. Instead they are paid with taxes. Whereas the marketplace determines prices through buying and not-buying things. Note also government is brutally inefficient but market is gloriously efficient. There is a connection.

[hugodsa89]

@khanacademy again sorry, our should we look at the slope of the demand curve, until it reaches a points or the marginal benefit is still positive, until it reaches a stationary point?

[hugodsa89]

@khanacademy if we take into account what is our costs of production and produce just enough so we can pay ourselves, wouldn't it be the best a welfare society? or apply it to companies owned by the governments, so generate a higher welfare

[max12345678904]

@jappanpreeti nope, it's not.

[MrGiTag]

make some advanced function video



[jappanpreeti]

@max12345678904 is that really necessary?