Econ 101 Winter 2010 Lecture 8

Econ 101 Winter 2010 Lecture 8 - Economics 101...

Info iconThis preview shows pages 1–7. Sign up to view the full content.

View Full Document Right Arrow Icon
Click to edit Master subtitle style Lecture 1 Economics 101 Microeconomics University of Michigan Winter 2010 Lecture 8
Background image of page 1

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

View Full DocumentRight Arrow Icon
Lecture 1 22 Announcements n Today’s reading: n Chapter 4, p 102 -- 112 n Office Hours: n Monday: 12 – 2 n Tuesday: 11 – 1 n Wednesday: 12 – 2 n Thursday: 11 – 2 n Or call (734) 358 1590 for an appointment n Quiz in discussion section this week n Problem set 4 available on CTools
Background image of page 2
Lecture 1 33 Market Prices Quantity Price Supply Demand P* Qd*= Qs*
Background image of page 3

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

View Full DocumentRight Arrow Icon
Lecture 1 44 Market Outcomes Supply and Demand model lets us predict changes in Q and P from changes in market conditions n Answer positive questions: what will happen? Also raises fundamental normative questions n If we can predict what will happen, can we determine whether the outcome is desirable? n We will look at a specific interpretation of this “Are market outcomes efficient?”
Background image of page 4
Lecture 1 55 Market Outcomes and Efficiency Suppose the market allocates resources as described by the Supply and Demand model n Is it possible to reallocate resources in such a way that we make some people better off without harming others? n If so, should we produce more or less of the good? n Should we distribute those goods that are produced differently?
Background image of page 5

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

View Full DocumentRight Arrow Icon
Lecture 1 66 Social Surplus Method for measuring the net benefits of allocating resources in any given way Social surplus is the difference between: 1. The value of other goods consumers were prepared to give up in order to obtain the goods produced; and 2. The value of other goods the economy had to
Background image of page 6
Image of page 7
This is the end of the preview. Sign up to access the rest of the document.

This note was uploaded on 04/20/2010 for the course ECON 101 taught by Professor Gerson during the Winter '08 term at University of Michigan.

Page1 / 22

Econ 101 Winter 2010 Lecture 8 - Economics 101...

This preview shows document pages 1 - 7. Sign up to view the full document.

View Full Document Right Arrow Icon
Ask a homework question - tutors are online