Figure 29 Demand Curve and Consumer Surplus - PowerPoint PPT Presentation

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Figure 29 Demand Curve and Consumer Surplus

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Figure 29 Demand Curve and Consumer Surplus – PowerPoint PPT presentation

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Title: Figure 29 Demand Curve and Consumer Surplus


1
Figure 2-9Demand Curve and Consumer Surplus
P
12
Value of the benefits to the consumer of a
project to lower prices from  10 to  6
Project lowering of price -4
A
Additional surplus related to current
quantities (will be lost by the producers) (24)
10
B
C
Additional surplus related to additional
quantities (6)
8
D
E
F
Additional spending related to additional
quantities (-18)
6
G
H
I
Demand curve
0
X
6
7
9
Additional purchases (3)
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