1. Lectures in Microeconomics-Charles W. Upton More on Consumer Surplus

2. The Concept of Consumer Surplus is quite powerful.

3. More on Consumer Surplus The Concept of Consumer Surplus is quite powerful. I want to show some applications of this concept.

4. More on Consumer Surplus Valuing the Benefit of a Project The Government builds a new dam, creating a new lake. What are the recreational benefits from this lake? We can analyze this with consumer surplus

5. More on Consumer Surplus Valuing the Benefit of a Project

6. More on Consumer Surplus Valuing the Benefit of a Project

7. More on Consumer Surplus Valuing the Benefit of a Project

8. More on Consumer Surplus Valuing the Benefit of a Project

9. More on Consumer Surplus Valuing the Benefit of a Project

10. More on Consumer Surplus The Benefit 40 25

11. More on Consumer Surplus The Benefit 40 25

12. More on Consumer Surplus A Simple Application Demand for a swimming pool: V =300,000 - 30,000p

13. More on Consumer Surplus A Simple Application Demand for a swimming pool: V =300,000 - 30,000p Current capacity is 200,000

14. More on Consumer Surplus A Simple Application Demand for a swimming pool: V =300,000 - 30,000p Current capacity is 200,000 What Price Restricts Demand?

15. More on Consumer Surplus A Simple Application Demand for a swimming pool: V =300,000 - 30,000p Current capacity is 200,000 What Price Restricts Demand? 200,000=300,000-30,000p p=$3.33

16. More on Consumer Surplus A Simple Application Demand for a swimming pool: V =300,000 - 30,000p Current capacity is 300,000 What Price Restricts Demand? Should it be expanded to 300,000?

17. More on Consumer Surplus A Simple Application V = 300,000- 30,000p $10 300,000

18. More on Consumer Surplus A Simple Application V = 300,000- 30,000p $10 300,000

19. More on Consumer Surplus A Simple Application V = 300,000- 30,000p $10 300,000 $3.33 200,000

20. More on Consumer Surplus A Simple Application V = 300,000- 30,000p $10 300,000 $3.33 200,000

21. More on Consumer Surplus A Simple Application V = 300,000- 30,000p $10 300,000 $3.33 200,000 So what are the Costs?

22. More on Consumer Surplus A Simple Application V = 300,000- 30,000p $10 300,000 $3.33 200,000 So what are the Costs? If C<$166,667 Expand If C> $166,667 Don’t

23. More on Consumer Surplus End ©2004 Charles W. Upton