BIOCH498 Lecture Notes - Lecture 9: Manshiyat Naser, Economic Surplus, Lead
13 Jun 2015
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Economics 101 october 9th: consumers" surplus, some applications, financial environment of business, read chapters 5, 7, and 8. Willingness to pay for the last unit = marginal benefit. The difference between what a consumer is willing to pay minus what the consumer has to pay. Example: on a hot day, you are driving on highway 16 east to saskatoon. Car breaks down, stops by last chance tavern: Bartender decides to charge the person at 4$ for 2 beers, consumer thinks it is cheaper than 6$ for 1, so buys another beer. Consumer compares to previous price again and is encouraged to buy another beer. A part of calculating consumer surplus - cs 0: discrete goods a. i. e. doesn"t make sense to say we have bought half a car or computer; these are discrete goods, continuous goods. So, p = 8$ and q = 2. *stops subtracting once price is about to hit a negative value*
