Here is the synopsis of our sample research paper on UTILITY, CONSUMER SURPLUS AND VOLUNTARY EXCHANGE. Have the paper e-mailed to you 24/7/365.
Essay / Research Paper Abstract
This 3-page paper attempts to answer concepts in consumer surplus and utility. Bibliography lists 2 sources.
Page Count:
3 pages (~225 words per page)
File: D0_MTeconcons.rtf
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Unformatted sample text from the term paper:
well examine the concept and behavior of consumer surplus. Well also try to figure out if a straight exchange of goods for money brings the satisfaction its supposed to.
In the example were asked to evaluate, someone attends an auction, with the plan to pay $100 for a specific item. What ends
up happening, however, is that the individual ends up purchasing the item for $50. There are some questions this scenario brings up.
First, what is comparison of the utility of $100 versus the utility of the good -- and how does a voluntary exchange result in a win-win situation for both parties?
Second, has the utility of the item increased because of the lower price? If so, why?
Finally, given the lower price, has the total utility for the individual increased? If so, why? Before answering
these questions, some definitions might be in order. The definitions in question will involve consumer surplus and utility. Consumer surplus, in its most basic form, is the amount that a
consumer benefits from by being able to purchase a product or service for a price less than what he or she would otherwise be willing to pay (Parke, 2007). The
consumer, by the way, determines what he/she is wiling to pay, based on a typical market price (Parke, 2007). In our above example, the individual in question has a
consumer surplus of $50, as he was willing to pay $100, but only ended up having to pay $50 for the item.
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