{[ promptMessage ]}

Bookmark it

{[ promptMessage ]}

You are willing to pay a price that is 1 more than

Info icon This preview shows page 1. Sign up to view the full content.

View Full Document Right Arrow Icon
This is the end of the preview. Sign up to access the rest of the document.

Unformatted text preview: willing to pay a price that is: 1) more than the cost of producing the good, and/or 2) more than the seller’s next best alternative Therefore, grocer gains from selling to you (producer surplus) We are joined together by mutual gains through market exchange The consumers’ perspective The Look at demand side of market and ask: What is the total value in use What to consumers of the quality Q*? to It is the total area under demand It curve from 0 to Q* (OABQ*) curve People usually do not have to give up all of this because suppliers will because deliver at a price of P* deliver Price A B P* Demand O Q* Quantity What Will the Price Be? What Price and valu...
View Full 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