A Theory of Consumers Surplus and Example of Surplus of Consumers

Surplus of consumers are considered as the significant in the cost-benefit to analysis on the public investment for the welfare of the society. Rate of the product is always less than what a person is willing to pay for it. The difference between consumers wills to pay and those actual pays lead to satisfaction which is consumer surplus.On the other hand, surplus of producer exists when actual price exceeds the minimum price that the seller is ready to accept. Resource owners usually captured producer’s surplus.Meaning of Consumer Surplus:At first, Marshall had proposed the theory of consumer surplus which is based on demand theory....

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Analysis of Market Structure and Trends of Property Market

To define about market structure we will take a definition of French Economist, Cournot - “Market in economy is not the place where purchases and sales of a commodity take place.” Till now there are many ways of categorization of market structure but we will discuss here on some basic characters of market.Number and Size of sellers: Number of sellers decides the seller’s size. If there are large number of sellers, influence of one firm will be very small. If there is few numbers of sellers in market, every firm will have enough influence over price and supply. Market can be in dominant function if there are enough influence over price and supply.Number of Size Distribution of buyers:If there are many buyers, they will pay same price. If there is single buyer, he will be able to demand lower price.Product Difference:Product...

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Revenue Analysis and Pricing Policies in Property Market

Revenue is a type of income which is received by the firm. It is related to Total Revenue, Average Revenue and Marginal Revenue.Total Revenue (TR) – It is total income of a firm by selling a commodity at a price. We can indicate it as:TR = PXQTR = Total RevenueP = PriceQ = Number of UnitsAverage Revenue (AR) – We can find it by dividing the Total Revenue with the number of units sold. It can be indicated as:AR = TR/QTR = Total RevenueQ = Number of UnitsMarginal Revenue (MR) – It is the addition to the Total Revenue as a result of increase in the sale of an addition unit by the firm.Relation between TR and Price Elasticity or Demand:If the price elasticity of demand for his product is relatively inelastic (Ep <1),>1), increase in price will decrease it TR.We can express via a diagramWhen Price increases and Ep is...

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Property Market is also Depended on Demand Analysis

There is a big difference between demand and want. Demand can’t be just want. The want, which are backed with purchasing power are called demand. Economics has a different definition about demand. The ability to pay is called demand in economics. Desire also can’t be a demand. For example – a beggar desires to purchase a car, can’t be demand in the word of economics.Law of Demand:There is a simple rule of demand, as price increases the demand decreases and as price decreases demand increases. But only price is not factor which affects the demand or supply.Demand Schedule:Quantity DemandExceptions of Demand Law:Giffens Goods – Giffens...

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Way of Generating Real Estate Revenue

In the recession many companies are planning various ways to generate revenue from their business. Real Estate sector of India is also a big industry. In the real estate there are many big and small companies which are planning various ways to generate revenue from this industry.I have analyzed a company revenue model which is from real estate sector. I am going to share the company revenue model. I have already share about the company in my previous post. Now, here I am going to share company’s revenue model.The real estate company has call center revenue which has been explore in this way:Product to promote:Company has launched a...

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India’s first Real Estate Retail Chain Company and Its Adviser Model & POW

PropertySensex announces to establish it as an India’s 1st real estate retail chain company. The company offers services in real estate sector as a single vendor in commercial, residential, farmhouses, office spaces and in flats properties. The company has expertise staffs for leasing commercial properties anywhere across India on 0% brokerage. It has given services as commercial space, office space, show room space, lease space and rent space for big corporate also like – TATA AIG Life Insurance, Max Life Insurance, Bharti AXA Life Insurance, Religare, Aviva, Subhiksha, Spencer Retail, Vishal Mega Mart, Wall mart and many more.Let...

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Advisor Model to Start own Business in Real Estate Sector

All industries in all over world are facing crisis, today. Specially, Property and Real Estates industry are in losses. In the mid of crisis PropertySensex has launched India’s 1st real estates retail chain as adviser model.On the adviser model the company announces that an adviser is a person who wants to do part time and full time job to earn extra money just giving advice about property. The opportunity will be provided by NetworkSensex which is a part of PropertySensex.The program will run on unique concept which will provide 0% brokerage for buyer. An adviser has to just send an SMS to know us if a buyer interested to buy a property...

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