MICROECONOMICS PRINCIPLES WITH ETHICS

MODULE 8: Demand Elasticity and Consumer Surplus

Textbook Reading:

Demand Tools – Demand Elasticities and Consumer Surplus

Presentation Slides:

Additional Useful Information:

Microeconomics - Elasticities
This open source chapter from an economics textbook offers an alternative discussion of elasticities.

Consumer Surplus
This Wiki page covers some details about both consumer and producer surplus.

OVERVIEW

In this module we introduce several tools related to the demand side of the market: Elasticities and Consumer surplus. Elasticities are used to measure the sensitivity of demand to changes in product prices and consumer incomes. Consumer surplus is a dollar value measuring the amount of extra surplus value that accrues to all purchasers of a product at a particular price. These tools are applied later to evaluate outcomes of various market situations.

VIDEO LECTURES

Demand Measurement Tools Intro -3 minutes

Price Elasticity of Demand - 38 minutes

Cross-Price and Income Elasticities of Demand - 5 minutes

Consumer Surplus Defined - 24 minutes