exam 2 econ 201 reading notes-4

exam 2 econ 201 reading notes-4 - 20:27 Market Efficiency...

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20:27 Market Efficiency Consumer surplus and producer surplus are the basic tools that economists use to  study the welfare of buyers and sellers in a market The Benevolent Social Planner Wants to maximize the economic well being of everyone in society Measure society’s economic well being through:  the sum of consumer and producer surplus (total surplus) Consumer surplus is the benefit that buyers receive from participating in the market Value to buyers - Amount paid by buyers Producer surplus is the benefit that sellers receive Amount received by sellers - cost to sellers Total surplus= value to buyers- cost to sellers Total surplus in a market is the total value to buyers of the goods (measured by their  willingness to pay) minus the total cost to sellers of providing those goods
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exam 2 econ 201 reading notes-4 - 20:27 Market Efficiency...

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