April 4 discussion
Willingness to Pay (buyer) how much ppl are willing to pay for a product.
Willingness to Accept (seller) – how much a seller will accept as payment
Economic tradeoffs of money gain vs. environment
Welfare – how well are we doing?
Looking at the welfare of consumers and producers.
The Supply Graph – its just a straight diagonal line up.
The first crab is very cheap to make or find, but then as you do more, they get more
expensive to produce and find
Marginal cost, how much does it cost to get to the next quantity.
Regulators cut fishing days – supply curve shifts IN. Supply gets smaller, so its more
expensive to make the product.
Producer surplus = profit.
Profit = Revenue – costs
Now setting exactly the middle of the graph