Ch. 4 Outline - 1) Deadweight Loss - DWL 1 4. Supply and...

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

View Full Document Right Arrow Icon
Chapter 4 Outline Supply and Demand: Applications and Extensions Econ 1B, Spring 2010 A. Private competitive markets efficient and tend to maximize welfare 1. Demanders value goods a. Efficiency? b. The problem of scarcity c. The demand curve d. Individual consumer surplus e. The marginal benefit curve f. Total consumer surplus 2. Suppliers minimize costs a. The supply curve b. Individual producer surplus c. Marginal cost curve d. Total producer surplus 3. Equilibrium and efficiency - total social welfare a. Maximum consumer and producer surplus b. Net social benefit c. Third party effects d. When marginal benefit equals marginal costs e. Effect of the political process f. Price floors and price ceilings
Background image of page 1

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

View Full DocumentRight Arrow Icon
Background image of page 2
Background image of page 3
This is the end of the preview. Sign up to access the rest of the document.

Unformatted text preview: 1) Deadweight Loss - DWL 1 4. Supply and demand in action a. A decrease in the price of a complement 1) 2) 3) 4) b. A decrease in the price of a substitute 1) 2) 3) 4) c. An increase in the price of a complement d. An increase in the price of a substitute e. An increase in income for a normal good f. An increase in income for an inferior good g. Simultaneous changes in supply and demand 1) Increases in both 2) Decrease in both 3) Increase in demand and decrease in supply 2 4) Decrease in demand and increase in supply 5. Estill Bodega the Snicker effect - see handout save group number and exercise for 3/16/10, week 8 3...
View Full Document

This note was uploaded on 09/08/2010 for the course ECON 1B at San Jose State University .

Page1 / 3

Ch. 4 Outline - 1) Deadweight Loss - DWL 1 4. Supply and...

This preview shows document pages 1 - 3. Sign up to view the full document.

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