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→Consumer Choice: consumer surplus example
Consumers stop buying a good when the demand price equals the price paid. For movies, the demand price falls the longer it keeps playing in a theater. After you’ve seen the movie once or twice, you’re not willing to pay so much to see it again. People stop paying to see the movie, and the theater stops playing it and begins showing a new movie instead.
Consumers stop buying a good when the demand price equals the price paid. For movies, the demand price falls the longer it keeps playing in a theater. After you’ve seen the movie once or twice, you’re not willing to pay so much to see it again. People stop paying to see the movie, and the theater stops playing it and begins showing a new movie instead.
Almost every time someone buys something, he benefits from the consumer surplus of that transaction because he would probably pay a little more than he did. If you value a chocolate candy bar at $1.05 but can buy it for $1, then you acquired extra wealth of 5 cents as your consumer surplus. You would have paid $1.05 for it, but only paid $1 and then had both the candy bar and the 5 cents. You're richer from the transaction by an amount equal to your consumer surplus.
==Charity==
==Charity==