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that can be added to a VORSIM model**

This diagram (created with VORPLOT) shows how to calculated simple consumer surplus (assuming a long run – non-shifting – demand curve) as a welfare indicator in an economic model. Formulas for indicators like this can be added to the Indicator workbook for a model or can be calculated from model solutions in report workbooks. Although linear demand schedules are assumed here, these formulas are reasonable approximations consumer surplus calculations from non-linear demand schedules as well. |