![]() ![]() With the rise in equilibrium price and a fall in equilibrium quantity, consumer surplus falls. Integrals run from market price (P Mkt) to maximum reservation price(P max) for a given demand function. There are 4 rectangles, and I choose to use left endpoints. The above formula is derived in the following manner: For general demand curves, the surplus is calculated using: Where D(Pmax) 0. ![]() We’ll have to approximate the value of the integral using rectangles.
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