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  • PGDM: Consumers, Firms and Markets: Veena K. Pailwar Worksheet 1: Consumer Surplus

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    Neelu Aggrawal
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    The document is a worksheet calculating consumer surplus from a market with 4 total units of a good. It shows the willingness to pay of each additional unit, the total willingness to pay, the market price of ₹2 per unit, the number of units purchased at that price, the total actual payment made, and the consumer surplus calculated as total willingness to pay minus total actual payment. The consumer surplus is ₹6 for the first unit, ₹10 for the second, ₹12 for the third, and ₹12 for the fourth, demonstrating that consumer surplus is maximized when the market clears.

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    The document is a worksheet calculating consumer surplus from a market with 4 total units of a good. It shows the willingness to pay of each additional unit, the total willingness to pay, the market price of ₹2 per unit, the number of units purchased at that price, the total actual payment made, and the consumer surplus calculated as total willingness to pay minus total actual payment. The consumer surplus is ₹6 for the first unit, ₹10 for the second, ₹12 for the third, and ₹12 for the fourth, demonstrating that consumer surplus is maximized when the market clears.

    Copyright:

    © All Rights Reserved
    Download as XLSX, PDF, TXT or read online from Scribd
    Flag for inappropriate content
    Download as xlsx, pdf, or txt
    16 views2 pages

    PGDM: Consumers, Firms and Markets: Veena K. Pailwar Worksheet 1: Consumer Surplus

    Uploaded by

    Neelu Aggrawal
    The document is a worksheet calculating consumer surplus from a market with 4 total units of a good. It shows the willingness to pay of each additional unit, the total willingness to pay, the market price of ₹2 per unit, the number of units purchased at that price, the total actual payment made, and the consumer surplus calculated as total willingness to pay minus total actual payment. The consumer surplus is ₹6 for the first unit, ₹10 for the second, ₹12 for the third, and ₹12 for the fourth, demonstrating that consumer surplus is maximized when the market clears.

    Copyright:

    © All Rights Reserved
    Download as XLSX, PDF, TXT or read online from Scribd
    Flag for inappropriate content
    Download as xlsx, pdf, or txt
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    PGDM: Consumers, Firms and Markets: Veena K.

    Pailwar
    Worksheet 1: Consumer Surplus

    Willingness Market Total Units


    Total Additional to pay per Total Willingness to pay (TWP) (in Purchased
    Unit Unit additional ₹) Price if market
    (in ₹)
    unit (in ₹) price is ₹4

    1 1 8 1*8 = 8 2 1

    2 1 6 1*8 + 1*6 = 14 2 2

    3 1 4 1*8 + 1*6 + 1*4 = 18 2 3

    4 1 2 1*8 + 1*6 + 1*4 + 1*2 = 20 2 4


    Total Actual Payment (TAP)
    (in ₹) CS= TWP – TAP

    2*1 = 2 8-2 = 6

    2*2 = 4 14-4 = 10

    2*3 = 6 18 -6=12

    2*4 = 8 20-8=12

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