THEORY OF CONSUMER SURPLUS PDF



Theory Of Consumer Surplus Pdf

Consumer choice Wikipedia. Consumer Surplus is one of the very important concept in the modern economic analysis. The Concept Consumer Surplus was introduced by Prof. A. J. Dupuit, in the year 1844. But this concept was developed by Prof. Alfred Marshall in the year 1890, in his famous book ‘The Principles of Economics, Introduction to Transportation Demand Analysis and Overview of Consumer Theory Moshe Ben-Akiva 1.201 / 11.545 / ESD.210 Transportation Systems Analysis: Demand & Economics.

Math 1526 Consumer and Producer Surplus

Consumer Surplus in Online Auctions New York University. Addenda to Part 1 of Theories of Surplus-Value. 1. Hobbes on Labour, on Value and on the Economic Role of Science . 2. Historical: Petty Negative Attitude to Unproductive Occupations. Germs of the Labour Theory of Value. Attempt to Explain Wages, Rent of Land, the Price of Land and Interest on the Basis of the Theory of Value. 3. Petty, Sir Dudley North, Locke. 4. Locke Treatment of Rent and, The concept of consumer surplus is derived from the law of diminishing marginal utility. As per the law, as we purchase more of a commodity, its marginal utility reduces. Since the price is fixed, for all units of the goods we purchase, we get extra utility. This extra utility is consumer surplus..

The concept of consumer surplus is derived from the law of diminishing marginal utility. As per the law, as we purchase more of a commodity, its marginal utility reduces. Since the price is fixed, for all units of the goods we purchase, we get extra utility. This extra utility is consumer surplus. 131 The Theory The theory of calculating the benefits of RE as the increase in consumer surplus is relatively straight-forward. The difficulties come in applying that

concept of consumer surplus is a basic tool of welfare economics.” Thistoolcouldnotberejectedifa“fullandobjectiveanalysis”was to be realized according to federal guidelines. 27/12/2018 · cosumer'surplus theory The explanation of consumers surplus Marshall and Hicks explanation of consumers surplus.

Consumer surplus relates to the fact that although the price is the same for each can (the price of the six-pack divided by six), your willingness to pay is probably greater for the first can than it … concept of consumer surplus is a basic tool of welfare economics.” Thistoolcouldnotberejectedifa“fullandobjectiveanalysis”was to be realized according to federal guidelines.

Consumer and Producer Surplus We’ve already talked about the notion ofe ciency, noting that the market usually lead to e cient outcomes (Principle #8). Consumer Theory Jonathan Levin and Paul Milgrom October 2004 1 The Consumer Problem Consumer theory is concerned with how a rational consumer would make consump-tion decisions. What makes this problem worthy of separate study, apart from the general problem of choice theory, is its particular structure that allows us to de-rive economically meaningful results. The structure arises …

APPLICATION OF THE INTEGRAL I: CONSUMER AND PRODUCER SURPLUS 1. Supply and demand One of the most fundamental economic models is the law of supply and demand for a certain product (milk, bread, fuel etc.) or service (transportation, health care, education etc.) in … A THEORY OF SURPLUS LABOUR Kaushik Basu Delhi School of Economics Delhi - 110 007 India CONTENTS 1. The Problem 2. Basic Concepts 3. A Simple Model: The Casual Labour Market 3.1 Partial Equilibrium 3.2 General Equilibrium 3. 3 Surplus Labou r 4. Some Policy Issues 5. A Generalized Model 6. Conclusion . 1. 1. THE PROBLEM Broadly speaking, an economy is said to have surplus …

Consumer surplus is the “profit” we make when we exchange money for goods and services. It is the difference between the maximum price we are willing and able to pay –which is We demonstrate that estimation of consumer surplus is inherently unreliable when only a small number of observations are available, and when the consumer surplus estimate depends critically on extrapolation of the demand curve beyond the sample observations.

Consumer’s surplus is the difference between the maximum amount a consumer is willing to pay for the good and the price he actually pays for the good. In our example given above, the consumer’s surplus is $15 ($25 – $10). The Surplus Approach in the Physiocrats, Classical Theory, and Marx As indicated in the Introduction, we trace the origin of the Classical surplus concept to the Physiocrats and especially Franςois Quesnay’s Tableau.

Consumer Surplus CliffsNotes Study Guides

theory of consumer surplus pdf

Generated User Benefits and the Heathrow Expansion. APPLICATION OF THE INTEGRAL I: CONSUMER AND PRODUCER SURPLUS 1. Supply and demand One of the most fundamental economic models is the law of supply and demand for a certain product (milk, bread, fuel etc.) or service (transportation, health care, education etc.) in …, Consumer Surplus is one of the very important concept in the modern economic analysis. The Concept Consumer Surplus was introduced by Prof. A. J. Dupuit, in the year 1844. But this concept was developed by Prof. Alfred Marshall in the year 1890, in his famous book ‘The Principles of Economics.

HEALTH&MEDICINE THE WAR ON CONSUMER SURPLUS. A THEORY OF SURPLUS LABOUR Kaushik Basu Delhi School of Economics Delhi - 110 007 India CONTENTS 1. The Problem 2. Basic Concepts 3. A Simple Model: The Casual Labour Market 3.1 Partial Equilibrium 3.2 General Equilibrium 3. 3 Surplus Labou r 4. Some Policy Issues 5. A Generalized Model 6. Conclusion . 1. 1. THE PROBLEM Broadly speaking, an economy is said to have surplus …, The concept of consumer surplus is derived from the law of diminishing marginal utility. As per the law, as we purchase more of a commodity, its marginal utility reduces. Since the price is fixed, for all units of the goods we purchase, we get extra utility. This extra utility is consumer surplus..

Consumer Surplus CliffsNotes Study Guides

theory of consumer surplus pdf

theory of consumer’s surplus Economics Concepts. Definition: Consumer surplus is defined as the difference between the consumers' willingness to pay for a commodity and the actual price paid by them, or the equilibrium price. Description: Total social surplus is composed of consumer surplus and producer surplus. It is a measure of consumer Theory of Consumer’s Surplus The concept of consumer’s surplus is one of the most important idea in economic theory especially in demand and welfare economics. It is a measure of the welfare that people gain from consuming goods and services..

theory of consumer surplus pdf


This paper proves the existence of consumer’s and producer’s surplus, and their aggregate counterparts, without betting on some favorable price changes. Such surplus is the excess value over opportunity cost. Instead of hoping for favorable price change, a more positive attitude to obtain Microeconomics and mathematics (with answers) 7 Consumer surplus and producer surplus Consumer surplus (CS) Producer surplus (PS) CS is the difference between the price

General Economics: Theory of Consumer Behaviou-Indiffernce Curve 19 Marshallian Consumer’s Surplus • Marshall defined Consumer’s Surplus as Addenda to Part 1 of Theories of Surplus-Value. 1. Hobbes on Labour, on Value and on the Economic Role of Science . 2. Historical: Petty Negative Attitude to Unproductive Occupations. Germs of the Labour Theory of Value. Attempt to Explain Wages, Rent of Land, the Price of Land and Interest on the Basis of the Theory of Value. 3. Petty, Sir Dudley North, Locke. 4. Locke Treatment of Rent and

The theory of consumer and choice is the branch of microeconomics that relates preferences to consumption expenditures and to consumer demand curves. It analyzes how consumers maximize the desirability of their consumption as measured by their preferences subject to limitations on their expenditures, by maximizing utility subject to a consumer budget constraint . Read this article to learn about Consumers’ Surplus – explained with diagram! The Marshallian Surplus: The consumers’ surplus is a concept introduced by Marshall, who maintained that it can be measured in monetary units, and is equal to the difference between the amount of money that a consumer actually pays to buy a certain quantity of a

Title: Small Income Effects: A Marshallian Theory of Consumer Surplus and Downward Sloping Demand. Created Date: 6/18/2001 3:47:34 PM Consumer’s (producer’s) surplus is a simple concept that even a layman of Economics can understand: it is the triangular area under a demand curve (above the supply curve) with the price line being the base. 1 There are many critics against this concept: Samuelson (1965)

Microeconomics and mathematics (with answers) 7 Consumer surplus and producer surplus Consumer surplus (CS) Producer surplus (PS) CS is the difference between the price Consumer's surplus now plays an important role in public sector investment analysis (notably social cost‐benefit analysis) and is central to much of modern welfare economic theory. Despite this it is still a topic of considerable controversy and debate; indeed few concepts in the recent history of economic thought have aroused such a

Consumer’s (producer’s) surplus is a simple concept that even a layman of Economics can understand: it is the triangular area under a demand curve (above the supply curve) with the price line being the base. 1 There are many critics against this concept: Samuelson (1965) A THEORY OF SURPLUS LABOUR Kaushik Basu Delhi School of Economics Delhi - 110 007 India CONTENTS 1. The Problem 2. Basic Concepts 3. A Simple Model: The Casual Labour Market 3.1 Partial Equilibrium 3.2 General Equilibrium 3. 3 Surplus Labou r 4. Some Policy Issues 5. A Generalized Model 6. Conclusion . 1. 1. THE PROBLEM Broadly speaking, an economy is said to have surplus …

2 Consumer Surplus and Dead Weight Loss Taxes • The demand for a product is Q = 100-2p. • The good sells for 10 • The Government imposes a tax of $5 Consumer surplus generally declines with consumption. One explanation for this is the law of diminishing marginal utility , which suggests that the first unit of a good or service consumed generates much greater utility than the second, which generates greater utility than the third and subsequent units.

theory of consumer surplus pdf

Consumer's surplus now plays an important role in public sector investment analysis (notably social cost‐benefit analysis) and is central to much of modern welfare economic theory. Despite this it is still a topic of considerable controversy and debate; indeed few concepts in the recent history of economic thought have aroused such a CONSUMER BEHAVIOUR THEORY 2.1 INTRODUC1·ION Chapter 1 provided an overview of the area of research for this study, by identifying, among others, the objectives of the study together with the importance attributed to the study. This chapter will focus on the area of consumer behaviour by first considering a number of human behavioural models and the commonalities thereof with consumer

Theory of Consumer's Surplus Assignment Point

theory of consumer surplus pdf

Indifference Curve Analysis WikiEducator. Consumer Surplus is one of the very important concept in the modern economic analysis. The Concept Consumer Surplus was introduced by Prof. A. J. Dupuit, in the year 1844. But this concept was developed by Prof. Alfred Marshall in the year 1890, in his famous book ‘The Principles of Economics, Consumer’s surplus is the difference between the maximum amount a consumer is willing to pay for the good and the price he actually pays for the good. In our example given above, the consumer’s surplus is $15 ($25 – $10)..

theory of consumer’s surplus Economics Concepts

Theory of Consumer Behaviour Utility Economic Surplus. An early mathematical presentation of consumer's surplus Yeung−Nan Shieh Department of Economics, San Jose State University Abstract This paper shows the first presentation of consumer’s surplus as a definite integral is in, With this in mind, the overall purpose of the paper is to estimate how consumer surplus for heating, transport, and lighting, and their associated energy technologies ….

Introduction to Transportation Demand Analysis and Overview of Consumer Theory Moshe Ben-Akiva 1.201 / 11.545 / ESD.210 Transportation Systems Analysis: Demand & Economics Definition: Consumer surplus is defined as the difference between the consumers' willingness to pay for a commodity and the actual price paid by them, or the equilibrium price. Description: Total social surplus is composed of consumer surplus and producer surplus. It is a measure of consumer

Consumer surplus and economic welfare. Consumer surplus is a measure of the welfare that people gain from consuming goods and services; Consumer surplus is defined as the difference between the total amount that consumers are willing and able to pay for a good or service (indicated by the demand curve) and the total amount that they actually do Gains From Trade Consumer Surplus Quantifying Welfare E ects Welfare in Competitive Equilibrium Market Demand Announcements 1 Clicker frequency needs to be reset every time you turn it on.

The true consumer surplus is given by the area below the market demand curve and above the market price. This area consists of a triangle with base of length 5 and height of length 5. Applying the rule for the area of a triangle—one half the base multiplied by height—one finds that the value of the consumer surplus in this example is actually 12.5. Consumer surplus is the “profit” we make when we exchange money for goods and services. It is the difference between the maximum price we are willing and able to pay –which is

Read this article to learn about Consumers’ Surplus – explained with diagram! The Marshallian Surplus: The consumers’ surplus is a concept introduced by Marshall, who maintained that it can be measured in monetary units, and is equal to the difference between the amount of money that a consumer actually pays to buy a certain quantity of a Addenda to Part 1 of Theories of Surplus-Value. 1. Hobbes on Labour, on Value and on the Economic Role of Science . 2. Historical: Petty Negative Attitude to Unproductive Occupations. Germs of the Labour Theory of Value. Attempt to Explain Wages, Rent of Land, the Price of Land and Interest on the Basis of the Theory of Value. 3. Petty, Sir Dudley North, Locke. 4. Locke Treatment of Rent and

©2005 Pearson Education, Inc. Chapter 9 1 Consumer and Producer Surplus To determine the welfare effect of a governmental policy, we can measure the gain or loss in consumer and Consumer surplus is the “profit” we make when we exchange money for goods and services. It is the difference between the maximum price we are willing and able to pay –which is

THEORY OF CONSUMER SURPLUS: We discuss the basic concept of consumer surplus and its derivation. A consumer normally pays less for a commodity than the maximum amount that she would be willing to pay rather than forego its consumption. Consumer Theory Jonathan Levin and Paul Milgrom October 2004 1 The Consumer Problem Consumer theory is concerned with how a rational consumer would make consump-tion decisions. What makes this problem worthy of separate study, apart from the general problem of choice theory, is its particular structure that allows us to de-rive economically meaningful results. The structure arises …

Consumer Surplus is one of the very important concept in the modern economic analysis. The Concept Consumer Surplus was introduced by Prof. A. J. Dupuit, in the year 1844. But this concept was developed by Prof. Alfred Marshall in the year 1890, in his famous book ‘The Principles of Economics THEORY OF CONSUMER SURPLUS: We discuss the basic concept of consumer surplus and its derivation. A consumer normally pays less for a commodity than the maximum amount that she would be willing to pay rather than forego its consumption.

2 Consumer Surplus and Dead Weight Loss Taxes • The demand for a product is Q = 100-2p. • The good sells for 10 • The Government imposes a tax of $5 Gains From Trade Consumer Surplus Quantifying Welfare E ects Welfare in Competitive Equilibrium Market Demand Announcements 1 Clicker frequency needs to be reset every time you turn it on.

PDF This paper shows the first presentation of consumer's surplus as a definite integral is in Launhardt''s 1885 masterpiece, Mathematische Begrundung Der Volkswirtschaftslehre. In chapter 32 Addenda to Part 1 of Theories of Surplus-Value. 1. Hobbes on Labour, on Value and on the Economic Role of Science . 2. Historical: Petty Negative Attitude to Unproductive Occupations. Germs of the Labour Theory of Value. Attempt to Explain Wages, Rent of Land, the Price of Land and Interest on the Basis of the Theory of Value. 3. Petty, Sir Dudley North, Locke. 4. Locke Treatment of Rent and

•The Consumer’s Budget Constraint•Any point on the budget constraint line indicates the consumer’s combination or tradeoff between two goods. •For example, if the consumer buys no pizzas, he can afford 500 pints of Pepsi (point B). 1/11/2009 · At first, Marshall had proposed the theory of consumer surplus which is based on demand theory. He states, consumer surplus is a part of the benefit, which a person derives from his environment or conjuncture. The price, which a person pays for a product is always less than what he is willing to pay for it.

8/12/2015 · Welcome to ACDC Econ and my first holiday edition. In this video I explain consumer surplus, producer surplus, and deadweight loss. Make … Consumer Surplus is one of the very important concept in the modern economic analysis. The Concept Consumer Surplus was introduced by Prof. A. J. Dupuit, in the year 1844. But this concept was developed by Prof. Alfred Marshall in the year 1890, in his famous book ‘The Principles of Economics

Price Theory Lecture 2: Supply & Demand I. The Basic Notion of Supply & Demand Supply-and-demand is a model for understanding the determination of the price of PDF This paper evaluates the benefits to consumers from price stabilization in terms of the convexity-concavity properties of the consumer's indirect utility function. It is shown that in the

The Surplus Approach in the Physiocrats, Classical Theory, and Marx As indicated in the Introduction, we trace the origin of the Classical surplus concept to the Physiocrats and especially Franςois Quesnay’s Tableau. Consumer and Producer Surplus We’ve already talked about the notion ofe ciency, noting that the market usually lead to e cient outcomes (Principle #8).

CONSUMER BEHAVIOUR THEORY 2.1 INTRODUC1·ION Chapter 1 provided an overview of the area of research for this study, by identifying, among others, the objectives of the study together with the importance attributed to the study. This chapter will focus on the area of consumer behaviour by first considering a number of human behavioural models and the commonalities thereof with consumer Consumer’s (producer’s) surplus is a simple concept that even a layman of Economics can understand: it is the triangular area under a demand curve (above the supply curve) with the price line being the base. 1 There are many critics against this concept: Samuelson (1965)

Definition of Consumer Surplus. Tejvan Pettinger January 11, 2017 concepts. Readers Question: what is meant by consumer surplus? Can firms reduce or eliminate consumer surplus? Consumer Surplus is the difference between the price that consumers pay and the price that they are willing to pay. On a supply and demand curve, it is the area between the equilibrium price and the demand … Consumer surplus relates to the fact that although the price is the same for each can (the price of the six-pack divided by six), your willingness to pay is probably greater for the first can than it …

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theory of consumer surplus pdf

(PDF) An early mathematical presentation of consumer's surplus. CONSUMER BEHAVIOUR THEORY 2.1 INTRODUC1В·ION Chapter 1 provided an overview of the area of research for this study, by identifying, among others, the objectives of the study together with the importance attributed to the study. This chapter will focus on the area of consumer behaviour by first considering a number of human behavioural models and the commonalities thereof with consumer, Introduction to Transportation Demand Analysis and Overview of Consumer Theory Moshe Ben-Akiva 1.201 / 11.545 / ESD.210 Transportation Systems Analysis: Demand & Economics.

THE SENSITIVITY OF CONSUMER SURPLUS ESTIMATION TO

theory of consumer surplus pdf

Consumer Surplus Theory of Consumer Behaviour - Pearson. The Surplus Approach in the Physiocrats, Classical Theory, and Marx As indicated in the Introduction, we trace the origin of the Classical surplus concept to the Physiocrats and especially Franςois Quesnay’s Tableau. Consumer's surplus now plays an important role in public sector investment analysis (notably social cost‐benefit analysis) and is central to much of modern welfare economic theory. Despite this it is still a topic of considerable controversy and debate; indeed few concepts in the recent history of economic thought have aroused such a.

theory of consumer surplus pdf

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  • Ebook 10,15MB Theory Of Surplus Value Epub Book Scanning for Theory Of Surplus Value Do you really need this book of Theory Of Surplus Value It takes me 12 hours just to get the right download link, and another 7 hours to validate concept of consumer surplus is a basic tool of welfare economics.” Thistoolcouldnotberejectedifa“fullandobjectiveanalysis”was to be realized according to federal guidelines.

    •The Consumer’s Budget Constraint•Any point on the budget constraint line indicates the consumer’s combination or tradeoff between two goods. •For example, if the consumer buys no pizzas, he can afford 500 pints of Pepsi (point B). Price Theory Lecture 2: Supply & Demand I. The Basic Notion of Supply & Demand Supply-and-demand is a model for understanding the determination of the price of

    Consumer surplus or consumers' surplus is the monetary gain obtained by consumers because they are able to purchase a product for a price that is less than the highest price that they would be willing to … Microeconomics and mathematics (with answers) 7 Consumer surplus and producer surplus Consumer surplus (CS) Producer surplus (PS) CS is the difference between the price

    The concept of consumer surplus is derived from the law of diminishing marginal utility. As per the law, as we purchase more of a commodity, its marginal utility reduces. Since the price is fixed, for all units of the goods we purchase, we get extra utility. This extra utility is consumer surplus. THEORY OF CONSUMER SURPLUS: We discuss the basic concept of consumer surplus and its derivation. A consumer normally pays less for a commodity than the maximum amount that she would be willing to pay rather than forego its consumption.

    Consumer surplus relates to the fact that although the price is the same for each can (the price of the six-pack divided by six), your willingness to pay is probably greater for the first can than it … Price Theory Lecture 2: Supply & Demand I. The Basic Notion of Supply & Demand Supply-and-demand is a model for understanding the determination of the price of

    Consumer surplus is the “profit” we make when we exchange money for goods and services. It is the difference between the maximum price we are willing and able to pay –which is This paper proves the existence of consumer’s and producer’s surplus, and their aggregate counterparts, without betting on some favorable price changes. Such surplus is the excess value over opportunity cost. Instead of hoping for favorable price change, a more positive attitude to obtain

    The Surplus Approach in the Physiocrats, Classical Theory, and Marx As indicated in the Introduction, we trace the origin of the Classical surplus concept to the Physiocrats and especially Franςois Quesnay’s Tableau. 27/12/2018 · cosumer'surplus theory The explanation of consumers surplus Marshall and Hicks explanation of consumers surplus.

    PDF This paper shows the first presentation of consumer's surplus as a definite integral is in Launhardt''s 1885 masterpiece, Mathematische Begrundung Der Volkswirtschaftslehre. In chapter 32 An early mathematical presentation of consumer's surplus Yeung−Nan Shieh Department of Economics, San Jose State University Abstract This paper shows the first presentation of consumer’s surplus as a definite integral is in

    Consumer Theory Jonathan Levin and Paul Milgrom October 2004 1 The Consumer Problem Consumer theory is concerned with how a rational consumer would make consump-tion decisions. What makes this problem worthy of separate study, apart from the general problem of choice theory, is its particular structure that allows us to de-rive economically meaningful results. The structure arises … Ebook 10,15MB Theory Of Surplus Value Epub Book Scanning for Theory Of Surplus Value Do you really need this book of Theory Of Surplus Value It takes me 12 hours just to get the right download link, and another 7 hours to validate

    Consumer surplus based on willingness to pay is a well-established concept in classical economics and is grounded in rational choice theory, a normative model of human decision- making. 9 Rational choice theory represents human decision making at its most logical, when Definition: Consumer surplus is defined as the difference between the consumers' willingness to pay for a commodity and the actual price paid by them, or the equilibrium price. Description: Total social surplus is composed of consumer surplus and producer surplus. It is a measure of consumer

    Gains From Trade Consumer Surplus Quantifying Welfare E ects Welfare in Competitive Equilibrium Market Demand Announcements 1 Clicker frequency needs to be reset every time you turn it on. Addenda to Part 1 of Theories of Surplus-Value. 1. Hobbes on Labour, on Value and on the Economic Role of Science . 2. Historical: Petty Negative Attitude to Unproductive Occupations. Germs of the Labour Theory of Value. Attempt to Explain Wages, Rent of Land, the Price of Land and Interest on the Basis of the Theory of Value. 3. Petty, Sir Dudley North, Locke. 4. Locke Treatment of Rent and

    Consumer surplus and economic welfare. Consumer surplus is a measure of the welfare that people gain from consuming goods and services; Consumer surplus is defined as the difference between the total amount that consumers are willing and able to pay for a good or service (indicated by the demand curve) and the total amount that they actually do Consumer surplus generally declines with consumption. One explanation for this is the law of diminishing marginal utility , which suggests that the first unit of a good or service consumed generates much greater utility than the second, which generates greater utility than the third and subsequent units.

    APPLICATION OF THE INTEGRAL I: CONSUMER AND PRODUCER SURPLUS 1. Supply and demand One of the most fundamental economic models is the law of supply and demand for a certain product (milk, bread, fuel etc.) or service (transportation, health care, education etc.) in … Ebook 10,15MB Theory Of Surplus Value Epub Book Scanning for Theory Of Surplus Value Do you really need this book of Theory Of Surplus Value It takes me 12 hours just to get the right download link, and another 7 hours to validate

    The theory of consumer and choice is the branch of microeconomics that relates preferences to consumption expenditures and to consumer demand curves. It analyzes how consumers maximize the desirability of their consumption as measured by their preferences subject to limitations on their expenditures, by maximizing utility subject to a consumer budget constraint . With this in mind, the overall purpose of the paper is to estimate how consumer surplus for heating, transport, and lighting, and their associated energy technologies …

    This paper proves the existence of consumer’s and producer’s surplus, and their aggregate counterparts, without betting on some favorable price changes. Such surplus is the excess value over opportunity cost. Instead of hoping for favorable price change, a more positive attitude to obtain 1/11/2009 · At first, Marshall had proposed the theory of consumer surplus which is based on demand theory. He states, consumer surplus is a part of the benefit, which a person derives from his environment or conjuncture. The price, which a person pays for a product is always less than what he is willing to pay for it.