ECON 219 Lecture Notes - Economic Surplus, Price Floor, Demand Curve

44 views4 pages
aaronho0217 and 40067 others unlocked
ECON 219 Full Course Notes
10
ECON 219 Full Course Notes
Verified Note
10 documents

Document Summary

Legislated minimum wages make firms and some workers worse off, but benefits those workers who retain their jobs. Rent controls make some tenants better off at the expense of landlords (and harm other tenants) Price corresponding to a specific quantity demanded is the highest price consumers are willing to pay. As shown by the height of the demand curve. Price corresponding to a specific quantity supplied is the lowest price producers are willing to accept. As shown by the height of the supply curve. For each pizza, the price on the supply curve shows the additional cost to firms of producing that pizza. Surplus: the difference between the quantity supplied and the quantity demanded. Consumer surplus: difference between what the consumer was willing to pay and what they actually paid. Producer surplus: the difference between the price they sold the product for and the price they expected to sell the product for. Total surplus: sum of consumer and producer surplus.

Get access

Grade+20% off
$8 USD/m$10 USD/m
Billed $96 USD annually
Grade+
Homework Help
Study Guides
Textbook Solutions
Class Notes
Textbook Notes
Booster Class
40 Verified Answers
Class+
$8 USD/m
Billed $96 USD annually
Class+
Homework Help
Study Guides
Textbook Solutions
Class Notes
Textbook Notes
Booster Class
30 Verified Answers

Related Documents

Related Questions