Consumer Surplus

You can find a discussion of consumer surplus and producer surplus on the CFI website on Consumer Surplus 

Willingness to Pay

The video linked below provides a nice explanation on what we mean by willingness to pay. This tends to be a fairly simple concept to understand but can be a very difficult idea to put into practice. Consider how difficult it is to ask someone how much they are willing to pay for a good. Are they answering honestly? Are they deceiving you intentionally, or are they accustomed to anchoring their thoughts on price to what they expect to pay rather than what they are willing to pay. 

For videos that say they are unavailable, right click the video and copy the link into a new window.

 gives a standard economic explanation
 focuses on a marketing approach to collect information from customers.




Last modified: Tuesday, 2 July 2024, 5:04 PM