ECON 1000 Lecture Notes - Lecture 9: Economic Surplus, Demand Curve, Third Epistle Of John

• School: Carleton University
• Department: Economics
• Course: ECON 1000
• Professor: Patrick Coe

Document Summary

Chapter 7 - consumers, producers and the efficiency of. This chapter is our first look at welfare economics. Look at benefits to buyers and sellers of participating in a market. Show that the market equilibrium maximizes total benefits. Suppose a mint elvis presley album is sold at auction. Table 7. 1 shows what 4 bidders are willing to pay. Therefore there is a market surplus of 70. George cs = 0 they did(cid:374)"t get to parti(cid:272)ipate. 50