How to Calculate a Linear Demand Function

How to Calculate a Linear Demand Function

In economics, supply and demand functions come in many shapes and sizes. However, for the sake of simplicity we often assume they are linear. This makes it much easier to compute them, which in turn is important to analyze and understand many basic economic concepts (e.g. calculating consumer surplus). Therefore, […]

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How to Calculate Consumer Surplus (Title)

How to Calculate Consumer Surplus

Consumer Surplus is defined as the difference between the amount of money consumers are willing and able to pay for a good or service (i.e. willingness to pay) and the amount they actually end up paying (i.e. the market price). Every consumer has an individual willingness to pay for a […]

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