# Questions tagged [consumer-surplus]

The tag has no usage guidance.

7 questions with no upvoted or accepted answers
Filter by
Sorted by
Tagged with
721 views

### What are the (immediate) effects of changing a good's price on consumer and producer surplus?

Basically, I'm trying to understand why the total surplus is maximized at the equilibrium and what happens if the price isn't at the equilibrium. Say the price of a good is the equilibrium price. ...
66 views

### How big is the consumer surplus for typical consumer goods?

Economic transactions happen when both think it will benefit them - that is, when there are gains from trade on both sides. But that says nothing about the size of that gain. If you're a consumer, ...
235 views

### Consumer surplus from a Hicksian demand curve: what is it?

A Hicksian demand curve indicates how much of a good will be demanded given price holding level of overall utility fixed. When in equilibrium with a supply curve we end up with this area we would ...
371 views

### Calculating a cross price substitution/income effect

I am given a utility function $U(x,y)$, income $I$ and prices $p_x,p_y$. Then the price of $y$ rises to $p_y' = 3 \cdot p_y$. How are we supposed to calculate the substitution effect and income effect ...
22 views

### Change in Consumer Surplus with two goods

Suppose we have two goods, price changes in the two are independent; having seen this question I am considering why the change in total Consumer Surplus is the sum of the change in Consumer Surplus ...
Suppose a government agency has a monopoly in the provision of internet connections. The marginal cost of providing internet connections is $\frac12$, whereas the inverse demand function is given by: ...
Both demand and surplus functions are linear. Demand function is as following : $Q_d = 400 - 10P$. Equilibrium quantity is 200 units. Find the consumer gain I tried to solve it this way: First I ...