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 ...

A linear demand curve is a line representing the relationship between the demand for a product or service and its price. Everyone knows that sales are proportional to price: The more you charge for an ...

Grade school math students are likely familiar with teachers admonishing them not to just guess the answer to a problem. But a new proof establishes that, in fact, the right kind of guessing is ...