Documente Academic
Documente Profesional
Documente Cultură
Graph 1
Equilibrium
P: $1,300
Q: 100 computers
Total Revenue
TR= P x Q = $1,300 x 100 = $130,000
Consumer Surplus
WTP: $2,000
P: $1,300
Cs = WTP - P = $2,000 - $1,300
Cs= $700 Gain from exchange
Producer Surplus
WTS: $500 (OC)
P: $1,300
Ps = (P received - C) or (P received - WTS)
Ps = $800 Gain from exchange
Market Efficiency
TCS + TPS = $35,000 + $40,000 = $75,000
The total gain from the free market is
maximize
Chapter 1
Rational People decision making is based on the Marginal
Benefits (D) vs Marginal Costs (S).
Chapter 13
MB > MC: Purchase
MB = MC: Equilibrium and S = D
MB < MC:
MB is the willingness to pay for that extra units will provide
and on how many units that already possess. MB is the next
unit being consumed or acquired.
Equilibrium
P: $1,000
Q: 150 computers