Consumer surplus introduction발음듣기
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Consumer surplus introduction
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In the last video, we saw how you can actually view a demand curve as actually a marginal benefit curve.발음듣기
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That for any given the quantity of the good you're selling, that that point on the curve is actually showing the marginal benefit for that incremental unit.발음듣기
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And there's multiple ways that you could view this, assuming that we're talking about this new car here.발음듣기
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Maybe if you're going to only sell one unit, someone really wants it really bad, the benefit for them, the marginal benefit for that first unit for them, is going to be $60,000.발음듣기
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Now, let's say if you want to sell two units, that second unit might be bought by that same person.발음듣기
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Or it might be another person, another person who's just not as enamored as the first person, who says, OK, for $50,000 I do like that car.발음듣기
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And then for the third, the third person there, once again, they're not as enamored as the first two, they would be willing to buy it for $40,000.발음듣기
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And what we saw is at some point you could say, look, let's say that we decide that the price ends up being - for whatever reason - $30,000.발음듣기
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And so when the price is $30,000 - and this is kind of viewing it in the traditional notion of, at a price, what quantity were you selling it.발음듣기
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But when you think about that reality, what's actually happening is that this fourth person is right on the fence.발음듣기
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So right on the fence, but you're going to just barely get this fourth person to transact at this price.발음듣기
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But what we hinted at is if you do have one price for everybody - in the future we'll talk about not having one price for everybody - but if you did have one price for everyone, these first units were kind of sold below where they could have been sold.발음듣기
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So remember, we're viewing this same demand curve we're now viewing as a marginal benefit curve.발음듣기
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The marginal benefit of that unit, the benefit that the market got out of it is $30,000 higher than the price.발음듣기
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The marginal benefit for the second unit is $20,000 higher than the price at which the product is being sold.발음듣기
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The consumer's got $30,000 more in benefit, marginal benefit for them and value for themselves, than they had to pay for it.발음듣기
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And so when you think about this, you can say, well, what's the total consumer surplus here?발음듣기
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And another way of thinking about it is, what is the total excess of marginal benefit above and beyond the price paid?발음듣기
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And over here, the total consumer surplus is going to be the $30,000 for that first unit, plus the $20,000 for that second unit, plus the $10,000 for that third unit.발음듣기
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And so the total consumer surplus in this scenario when we sold four units at $30,000 is - And we're assuming we're selling cars here.발음듣기
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So in this scenario, in that week, the consumers would get $60,000 more in benefit for them, in perceived benefit for them, than what they actually had to pay for it.발음듣기
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And if you think about it, it's a little unideal for the seller, because they were selling something at a lower price than maybe what they could have gotten from at least these first few consumers here.발음듣기
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