Consumer surplus is the amount exceeding an equilibrium price the consumer is willing to pay. The equilibrium price is an idealized price, in which the demand for the good equals its supply. If the ...

Firms usually decide how many workers to employ based on how much income each worker generates for the company after deducting employment expenses. Managers estimate how much income workers generate ...

Learn how utility functions derive demand functions and their role in maximizing consumer satisfaction and economic decision making.

Uber has created more than a booming ride-sharing market. It’s given economists a treasure trove of data to understand one of the fundamental concepts of economics: the demand curve. Steven Levitt, ...