IMPORTANT APPLICATION

The concept of consumer surplus has important practical applications. Few such applications are listed below:

•  Consumer surplus is a measure of the welfare that people gain from consuming goods and services. It is very important to a business firm to reflect on the amount of consumer surplus enjoyed by diuerent segments of their customers because consumers who perceive large surplus are more likely to repeat their purchases.
• Understanding the nature and extent of surplus can help business managers make better decisions about setting prices. If a business can identify groups of consumers with diuerent elasticity of demand within their market and the market segments which are willing and able to pay higher prices for the same products, then firms can profitably use price discrimination.
•  Large scale investment decisions involve cost benefit analysis which takes into account the extent of consumer surplus which the projects may fetch.
• Knowledge of consumer surplus is also important when a firm considers raising its product prices Customers who enjoyed only a small amount of surplus may no longer be willing to buy products at higher prices. Firms making such decisions should expect to make fewer sales if they increase prices.
•  Consumer surplus usually acts as a guide to finance ministers when they decide on the products on which taxes have to be imposed and the extent to which a commodity tax has to be raised. It is always desirable to impose taxes or increase the rates of taxes on commodities yielding high consumer’s surplus because the loss of welfare to citizens will be minimal.

Goods and Service Tax Book (Updated upto 20th January 2018)

GST Student friendly Book most relevant/Useful for CA Intermediate/IPCC, CS executive , CWA Intermediate and CA final. 

Also useful for B.Com / M.Com / MBA/ BBA/UPSC/ SSC and Various Govt Exams.!! 

This book is approved by Ministry of HRD Govt.of India as Students friendly book.

Click on link given to Purchase Book-  https://goo.gl/ArNFJx

Author Name- CA Harshita Raichandani and CA Dhananjay Ojha

Unique features of This GST Book.

1.80+ GST chart included for quick revision of chapter.

2.Provisions presented in this book in simple manner.

3.Bullet and Heading given for Long term memorisation.

4.Updated upto 25th GST council recommendation {18th January, 2018}.

5.70+ Value added questions given with answer.

6.16 Chapters fully Coverage given.

7.Definitions of Technical term related with GST is given at one place.

8.Most useful for CA Intermediate/IPCC, CS executive , CWA Intermediate and CA final. ALSO useful for B.Com / M.Com / MBA/ BBA/UPSC/ SSC and Various Govt Exams.

Click on below Link to purchase Student friendly GST Book.

http://www.comgurukul.com/educational-books/gst-book/

GST (Goods and Services Tax) Book -A student friendly Book. - Bharat Gurukul

GST Student friendly Book most relevant/Useful for CA Intermediate/IPCC, CS executive , CWA Intermediate and CA final. ALSO useful for B.Com / M.Com / MBA/ BBA/UPSC/ SSC and Various Govt Exams.!! This book is approved by Ministry of HRD Govt.of India as Students friendly book. Author Name- CA Harshita Raichandani and CA Dhananjay Ojha Book […]