Introduction
Welcome Students. You have already went through the basics of the theory of consumer demand so its now time to learn more and this webquest will teach you.
Task
Please read this webquest and come prepare to discuss it in the next class.
Process
Consumer Surplus.
The underlying principles behind the demand curve are relatively simple to understand. They are also ones which many of us follow in our daily lives. For instance, when a product is on 'special offer' in a local shop and its price has been reduced, more will be demanded and purchased.
For any good or service, through, there are always some people who are prepared to pay above the given price to obtain it. One of the best examples where this happens is in the case of tickets to concerts or a cricket match. If all the tickets are sold out, there will always be some people who are willing to pay over the stated price to obtain a ticket. Another example might be the case of a chocholic who is prepared to pay over the odds to get a bar of his or her favourite chocolate. To the economist, such situations introduce the concept of Consumer Surplus.