ECO100 Chapter CH1: Welfare Economics
Document Summary
Producer surplus becomes the new consumer surplus. the intuition. Here is that every trade that makes at lea st one party better off without making the other party worse off is a good trade Like that. we had a gas crisis in the 1970s. and the government imposed a price ceiling. and how did it get resolved. How did we decide then who got the gas. Does anyone know. raise your hand and tell me if you know. and basically, why is it inefficient that people waited in line for gas The market makes sure that people who want the gas the most can get it. but is n"t the one thing it involves like. Jonathon gruber says morals matter in markets, but morals do matter. he say s it matters you sometimes ca n"t do the right thing because it might not be the thing that makes consumers willing to participate. that"s.
