Textbook Notes (368,241)
United States (205,992)
Economics (272)
CAS EC 101 (177)
All (50)
Chapter

Consumers, producers, and the efificency of markets.docx

2 Pages
104 Views
Unlock Document

Department
Economics
Course
CAS EC 101
Professor
All Professors
Semester
Winter

Description
Consumers, producers, and the efficiency of markets - Welfare economics: the study of how the allocation of resources affects economic wellbeing Consumer surplus - Willingness to pay o The maximum price that the buyer would pay is their willingness to pay, measures how much buyer values the good  Buyer willing to buy at less than maximum price and refuse to buy above it o Consumer surplus: amount buyer is willing to pay – what was paid - Using the demand curve to measure consumer surplus o Marginal buyer: the price given by the demand curve shows the willingness to pay of the marginal buyer, the buyer who would leave first if price increased any longer o The area below demand curve and above price is the consumer surplus - What does consumer surplus measure? o Good measure of economic well-being Producer surplus - Cost and
More Less

Related notes for CAS EC 101

Log In


OR

Join OneClass

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

Sign up

Join to view


OR

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.


Submit