Study Guides (238,096)
United States (119,676)
Economics (179)
ECON 2000 (55)
All (48)

Econ Notes 3 (got 96%)

9 Pages
Unlock Document

Louisiana State University
ECON 2000

Econ2000Chapters12131415Test31aPMC perfectly competitive short run equilibriumbPartial equilibrium analysis process of examining the equilibrium conditions in individual markets and for individual households and firms separatelycGeneral equilibrium exists when all markets in an economy are in simulataneous equilibrium dEfficiency systems produce what people want and does so at the least possible costChapter 122Market adjustments to changes in demandaIf your demand and supply curve shift out in short run equilibrium you have a profit if your demand and supply curve shift in you have a loss3Allocative efficiency and competitive equilibriumaPareto efficiencyiWhere no such changes are possibleiiSome people are better off but no one is worse off1What do we mean by better off2How do we account for changes that make some people better off and others worse offaExample Budget cuts in MassachusettsbRevisting consumer and producer surplusiConsumer surplus the difference between the maximum amount that buyers are willing to pay for a good and its current market price1Ex sandwhich sells for 7 you are willing to pay 12 you get a consumer surplus of 5
More Less

Related notes for ECON 2000

Log In


Don't have an account?

Join OneClass

Access over 10 million pages of study
documents for 1.3 million courses.

Sign up

Join to view


By registering, I agree to the Terms and Privacy Policies
Already have an account?
Just a few more details

So we can recommend you notes for your school.

Reset Password

Please enter below the email address you registered with and we will send you a link to reset your password.

Add your courses

Get notes from the top students in your class.