An indifference curve is used in contemporary microeconomics to demonstrate the effect of preference and budget limitations when consumers are choosing between products that would give them equal ...

The consumer surplus increases as the price of a good falls and decreases as the price of a good rises. It's depicted visually by economists as the triangular area under the demand curve between ...

An indifference curve is defined as a set of bundles that a consumer ... to pay for the opportunity to purchase an automobile at some price is the consumer surplus. 2. If the substitution effect is ...

Consumer surplus and producer surplus figures are derived from demand and supply curve analysis. The demand curve shows how many quantities of a product consumers are willing to purchase at ...

Graphically, it is depicted as the triangle-shaped area formed by the aggregate demand curve and the equilibrium price level. To find the consumer surplus, a good knowledge of integral calculus is ...