08_CS_&_PS

total must equals producer surplus pbc price smc b p

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Unformatted text preview: surplus (P*BC) Price S = MC B P* C 0 Q* Quantity Putting It All Together Putting Price A P* B D 0 Q* Quantity Demand Price A P* C 0 B D Market S P* C Q* Quantity B Price Supply S Q* Quantity 0 There are gains to suppliers and demanders — room for bargaining. Who gets producer and consumer surplus? Area ABC is up for grabs!...
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This note was uploaded on 12/21/2010 for the course BUSA 5311 taught by Professor Miners during the Fall '07 term at UT Arlington.

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