Consumers surplus is the difference between a consumers reservation price and the amount that he
actually has to pay. In this experimental market, where demanders reservation prices equal their Buyer
Values, a buyer gets consumers surplus equal to the dif

Elasticity measures how much a percentage change in price leads to a percentage change in quantity.
The formula for elasticity is the percentage change in quantity divided by the percentage change in
price. The same formula is used for elasticity of deman

Consumers surplus is the difference between a consumers reservation price and the amount that he
actually has to pay. In this experimental market, where demanders reservation prices equal their Buyer
Values, a buyer gets consumers surplus equal to the dif

Here are the market fundamentals:
Type of
Student
New Students
Number of Buyer
Students
Value
Fastidious
Frugal
300
300
$10
$22
Type of
Student
A
B
C
Former Students
Number of
Seller Cost for
Students
Used Book
200
$27
200
$15
200
$3
Can you always rearra

Total cost includes both variable costs and fixed costs. Variable costs (e.g. milk for a coffee shop) are
directly proportional to the output produced. Total variable cost depends on the number of units sold
and can be calculated by multiplying the quanti