ECON 1000 Lecture Notes - Lecture 3: Demand Curve, Opportunity Cost, Economic Surplus
9 Feb 2016
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It maximizes total revenue to firms and total utility to buyers. It maximizes the total welfare of buyers and sellers. It minimizes costs and maximizes profits of sellers. Lauren"s willingness to pay was , leslie"s willingness to pay was , and lydia"s willingness to pay was . What is the total consumer surplus for these three: , , , . He buys the computer and receives a consumer surplus of . How much did jeff pay for his computer: , , , , what happens to consumer surplus if the price of a good changes? a. b. c. d. It changes to zero if the price changes to zero. At the price of p1, what is consumer surplus: a, a + b, a + b + c, a + b + d. At the price of p2, what is consumer surplus: a, b, a + b, a + b + c.
