Economics 2150A/B Lecture Notes - Lecture 3: Lifesaving, Tax Incidence, Insulin

• School: Western University
• Department: Economics
• Course: Economics 2150A/B
• Professor: Kristin Denniston

Document Summary

9 & 10: to be posted today, due wednesday jan. 22 at midnight (this has been extended from next mon. , under tests and quizzes" on owl. Chapter 10: we will be looking at public policies and asking how we can evaluate the effects of these policies on our market (particularly economic efficiency). Economic efficiency: a result is economically efficient if: It maximizes the total surplus (ts) in the market. 1: ts = cs (consumer surplus) + ps (producer surplus) + gov revenue. *we use these basic ideas to analyze different public policies. If the price of a ticket was good deal: 2: 500 - 300 = 200, the cs would be 1100, the cs is the area under the demand curve and above the price. Producer surplus: represents the monetary benefit to producers for each unit sold in the market. 1800 100 = 1700 benefit: 2.