Consumer welfare refers to the overall well-being of consumers in terms of their satisfaction and benefit from consuming goods and services. It takes into account factors like quality, affordability, choice, and access.
Related terms
Price elasticity of demand: Price elasticity of demand measures how sensitive consumer demand is to changes in price.
Income effect: The income effect is the change in quantity demanded due to changes in purchasing power resulting from changes in income levels.
Utility maximization: Utility maximization is the concept that individuals aim to maximize their total satisfaction or happiness when making consumption choices.