Answer to Question 1
The amount of consumer surplus that each consumer enjoys will depend on the market price and the consumer's willingness to pay, which is derived from his or her individual demand curve. Thus, in a market where all consumers pay the same price, the higher an individual consumer's willingness to pay, the greater his consumer surplus. Suppose you and your friend were both buying French fries, but you like them much more than your friend does. Your consumer surplus in this case will be higher than your friend's because your willingness to pay for them is higher.
Answer to Question 2
The elasticity of supply is a units-free measure. We need a units-free measure of the elasticity of supply for the same reason we need a units-free measure of the elasticity of demand: Because the value of the elasticity of supply is independent of the units used to measure the price and quantity of the good, the elasticity of supply can be compared across the same good when quantity is measured in different units and/or the price is measured in different currencies. In addition, the elasticities of supply of different goods also can be compared even though they are measured in different units.
A pharmacist can explain to a patient why medication may look different and ensure the correct ...
Rising sea level: Some areas will be affected by a rise of just 40 cm
From Farm to Consumer
Please explain the different Rf values for xanthophyll’s in paper chromatography compared to ...
Draw an Edgeworth box for two consumers over two goods
Suppose the market supply curve is p = 5Q. If price increases from 10 to 15, the change in ...