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Distinguish between the following terms: demand curve and demand schedule, ordinal utility theory and cardinal utility theory, consumer surplus and producer surplus, arc elasticity and point elasticity

      

Distinguish between the following terms:
demand curve and demand schedule
ordinal utility theory and cardinal utility theory
consumer surplus and producer surplus
arc elasticity and point elasticity

  

Answers


Faith
a demand curve is a graphical representation of the contents of a demand schedule while a demand schedule is a tabular representation of the different amounts of commodity that a buyer will be willing to buy at different prices at a given time
ordinal utility theory argues that utility cannot be measured but can be ranked in terms of preferences while cardinal utility theory argues that utility is measurable in utils
consumer surplus represents the prices above the equilibrium price that consumers are willing to pay for a certain commodity instead of staying without it
arc elasticity is the average elasticity along a demand curve while point elasticity measures the propotioniate change in the quantity demanded due to a propotioniate change in price at a point along the demand curve
Faimus answered the question on February 20, 2018 at 07:45


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