top of page
Demerit goods and Merit goods - Welfare loss
The secret to scoring awesome grades in economics is to have corresponding awesome notes.
A common pitfall for students is to lose themselves in a sea of notes: personal notes, teacher notes, online notes textbooks, etc... This happens when one has too many sources to revise from! Why not solve this problem by having one reliable source of notes? This is where we can help.
What makes TooLazyToStudy notes different?
are clear and concise and relevant
is set in an engaging template to facilitate memorisation
cover all the important topics in the O level, AS level and A level syllabus
are editable, feel free to make additions or to rephrase sentences in your own words!
Looking for live explanations of these notes? Enrol now for FREE tuition!
Welfare loss for demerit goods
The welfare loss associated with the 'over-consumption' of a demerit good is the quantity Q1 to Q2.
Welfare loss for merit goods
The welfare loss associated with the 'under-consumption' of a merit good is the quantity Q1 to Q2.
There will be a net welfare loss, as shown by the shaded area.
The welfare loss is represented by the shaded area.
bottom of page