Can we say that consumer surplus is a good way to measure economic well being ?
Answers
Answer:
The total surplus in a market is a measure of the total wellbeing of all participants in a market. It is the sum of consumer surplus and producer surplus. Consumer surplus is the difference between willingness to pay for a good and the price that consumers actually pay for it.
Answer:
The total surplus in a market is a measure of the total wellbeing of all participants in a market. It is the sum of consumer surplus and producer surplus. Consumer surplus is the difference between willingness to pay for a good and the price that consumers actually pay for it.
Explanation:
Consumer surplus: The welfare or benefit enjoyed by consumers who pay a price lo...
Producer surplus: The welfare or benefit enjoyed by producers who sell for a price hi...
Deadweight loss (DWL): DWL is the loss of total welfare resulting from a market prod...
Allocative inefficiency: When a market is allocatively inefficient.