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Economic Surplus and Derived Demand

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  • Schlicht, Ekkehart

Abstract

Most demand -- especially labor demand -- is derived from the demand for some other product. This note demonstrates that the usual analysis of economic rent, as typically explained for the case of consumers' surplus, carries over to the case of derived demand.

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File URL: http://epub.ub.uni-muenchen.de/940/1/schlicht_consumersurplus.pdf
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Bibliographic Info

Paper provided by University of Munich, Department of Economics in its series Discussion Papers in Economics with number 940.

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Date of creation: Jun 2006
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Handle: RePEc:lmu:muenec:940

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Keywords: derived demand; indirect demand; consumers' surplus; economic rent;

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