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Title Details:
Consumers, businesses, welfare
Authors: Pseiridis, Anastasia
Lianos, Theodoros
Reviewer: Tsounis, Nikolaos
Description:
Abstract:
This chapter introduces the concept of economic welfare, measured through consumer and producer surpluses. We use these concepts to analyze graphically the government interventions discussed in Chapter 5, i.e., imposing a maximum or minimum price, taxing a good, subsidizing production. Next, we introduce the concept of net utility, i.e., the difference between the utility from consumption and the cost of producing a quantity of a good. We show how we can use these concepts to analyze various situations, such as the positive effects of the "consumption" of education and the negative effects of the production of a good whose production causes pollution.
Type: Chapter
Creation Date: 2015
Item Details:
License: http://creativecommons.org/licenses/by-nc-nd/3.0/gr
Handle http://hdl.handle.net/11419/2367
Bibliographic Reference: Pseiridis, A., & Lianos, T. (2015). Consumers, businesses, welfare [Chapter]. In Pseiridis, A., & Lianos, T. 2015. Economic analysis and policy: Microeconomics [Undergraduate textbook]. Kallipos, Open Academic Editions. https://hdl.handle.net/11419/2367
Language: Greek
Is Part of: Economic analysis and policy: Microeconomics
Publication Origin: Kallipos, Open Academic Editions