Why Consumer Surplus in Economics Should Take Externalities into Account
09/30/23
“Why should consumer surplus in economics take externalities into account?”
Consumer surplus in economics is often based on how much consumers “gain” from purchasing a product at a price lower than their maximum possible price. However, this may not include externalities such as pollution resulting from the creation of the product. This gives an inaccurate picture, which can be corrected by including externalities. This is Why Consumer Surplus in Economics Should Take Externalities into Account.








