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Resource management Proposed National Environmental Standards for Telecommunications Facilities Online version
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Appendix 4: Theoretical Considerations
Figure 1: Components of economic value
Source: NZIER
Text description of figure
The figure shows downward sloping demand curve and a horizontal supply curve and illustrates how consumer and producer surplus change if there is a shift in the demand curve caused by an increase in the quality of the service or good provided. Consumer surplus will increase overall if the new consumer surplus (as generated by the difference between the new price and the new amount the consumer is willing to pay, following an increase in the quality of the good/service) is greater than the original consumer surplus (as generated by the difference between the original price and the original amount the consumer is willing to pay)
The figure shows downward sloping demand curve and a horizontal supply curve and illustrates how consumer and producer surplus change if there is a shift in the demand curve caused by an increase in the quality of the service or good provided. Consumer surplus will increase overall if the new consumer surplus (as generated by the difference between the new price and the new amount the consumer is willing to pay, following an increase in the quality of the good/service) is greater than the original consumer surplus (as generated by the difference between the original price and the original amount the consumer is willing to pay)
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