Definition of
marginal use value
MUV, AUV and TUV
Method to
calculate
Graphical
illustration
Equality between
MUV curve and real income constant demand curve
Definition of
consumer's surplus
Pricing tactics
to extract consumer's surplus
All or nothing
demand curve = AUV curve
Membership fee (
fee �� CS )
State and
resolve the paradox of value - goods with high TUV does not necessarily have high MUV (
prices )
Application of Alchain
Generalization : an equal lump sum tax imposed on both high quality ( priced ) goods and
low quality ( priced ) goods will to a higher proportion of high quality ( priced ) goods
to be consumed.
Two
meaning of value