{[ promptMessage ]}

Bookmark it

{[ promptMessage ]}

L2 Economic Surplus

L2 Economic Surplus - Office hours James Hamilton Jennifer...

Info icon This preview shows pages 1–3. Sign up to view the full content.

View Full Document Right Arrow Icon
1 M 11-1 Sequoyah 234 Cynthia Wu Tu 9-11 Sequoyah 238 Jaime Thomas M 1-2, W 3-4 Sequoyah 207 Aaron Schroeder W 12-2 Sequoyah 139 Michael Miyake F 10-12 Sequoyah 139 Paul Lombardi M 2-4 Sequoyah 139 Jennifer Chen Tu 1:30-2:30, Th 10-11 Econ 307 James Hamilton Office hours Chapter 7: Efficiency and Exchange A. Producer surplus Employment opportunity: landscape services 5 hours per week cash pay, no benefits 35 $10 72 $12 7 $8 0 $1 Number of workers Hourly wage Supply of labor curve ($2) $0 $2 $4 $6 $8 $10 $12 $14 -20 0 20 40 60 80 Number of workers Wage ($ per hour) Supply of labor curve: to hire a given number of workers (represented by a point on horizontal axis) we would have to pay a certain wage (represented by a point on vertical axis)
Image of page 1

Info icon This preview has intentionally blurred sections. Sign up to view the full version.

View Full Document Right Arrow Icon
2 Height = opportunity cost for that potential worker If you would be willing to work for $8 and we pay you $10, then your surplus as a producer is $2 Supply of labor curve $0 $2 $4 $6 $8 $10 $12 $14 0 100 200 300 400 Number of workers Wage ($ per hour) Supply of labor curve $0 $2 $4 $6 $8 $10 $12 $14 0 100 200 300 400 Number of workers Wage ($ per hour) Surplus of 100 th
Image of page 2
Image of page 3
This is the end of the preview. Sign up to access the rest of the document.

{[ snackBarMessage ]}

What students are saying

  • Left Quote Icon

    As a current student on this bumpy collegiate pathway, I stumbled upon Course Hero, where I can find study resources for nearly all my courses, get online help from tutors 24/7, and even share my old projects, papers, and lecture notes with other students.

    Student Picture

    Kiran Temple University Fox School of Business ‘17, Course Hero Intern

  • Left Quote Icon

    I cannot even describe how much Course Hero helped me this summer. It’s truly become something I can always rely on and help me. In the end, I was not only able to survive summer classes, but I was able to thrive thanks to Course Hero.

    Student Picture

    Dana University of Pennsylvania ‘17, Course Hero Intern

  • Left Quote Icon

    The ability to access any university’s resources through Course Hero proved invaluable in my case. I was behind on Tulane coursework and actually used UCLA’s materials to help me move forward and get everything together on time.

    Student Picture

    Jill Tulane University ‘16, Course Hero Intern