Intermediate microeconomics

Chapter 5 : Consumer surplus and market demand

By Lund University

This chapter is based on chapter 14 and 15 of Intermediate microeconomics by Hal Varian.

Lectures on consumer's surplus

Based on chapter 14 of Intermediate microeconomics:

Consumer surplus, discrete goods

Consumer surplus with continuous demand

Lectures on market demand

Based on chapter 15 of Intermediate microeconomics:

The market demand model and aggregate demand

Price elasticity of demand

Price elasticity of demand - logs, units and elastic vs inelastic demand

Price elasticity of demand for linear demand functions

Revenue function

The connection between the price elasticity of demand and changes in revenue

The sign of the derivative of the revenue function when demand is elastic and inelastic

Marginal revenue

Income elasticity of demand