Chapter Four: CONSUMER AND PRODUCER SURPLUS
In this chapter we discuss consumer and producer surplus. Basically it focusing on the gains that
consumers and producers or buyers and sellers experience when they are engaged in a trade.
The terms consumer sur
A) Price Elasticity of Demand
The law of demand indicates that when price goes up(down), then quantity demanded goes
down(up.) When we have a business, we would like to know how much quantity demanded of
our product goes down(up) when its price
Chapter Two: Economic Models, Trade-Offs and Trade
In this introductory chapter, Krugman/Wells present different economic models.
-Production possibilities frontier: This model discusses the production possibilities or
production capabilities of a country
Chapter One: First Principles
This is an introductory chapter, where Krugman/Wells introduce few important economic principles and
concepts. Some of these concepts are:
-Resources and scarcity: In order to produce, we need resources: land, which includes
Behind the Supply Curve: Inputs and Costs
Short run and long run in microeconomics.
In the short run at least one input is fixed, while in the long run all inputs are variable.
Most of the chapter discusses costs of production in the short run. Only af
Perfect Competition and the Supply Curve
1) Pure competition is the first type of markets that we will discuss. The others are pure
monopoly, monopolistic competition and oligopoly.
2) The first step that we will take, when we discuss each one of these th
1) What are the main characteristics of pure monopoly?
2) In order for a monopolist to remain a monopolist, it should be able to
prevent other companies from entering the industry. Discuss the main
types of barriers to entry, which prohibit other
Chapter Fourteen, Oligopoly
In Chapters nine and ten we discussed pure competition and pure monopoly. These are
the two extreme market models. In the case of pure competition, there is large number of
sellers and each seller has no market power or is a pr
Set run directory to D:\Program Files (x86)
Native Launcher Version: 1253
Operating System: Windows 10 Pro
Application Hash: 5cb96b40a83d18d9e67981a2f1f5cb08e3149cd1
Application Data directory: C:\Users\DemonRellik25\AppData\Roaming/.minecraft
(Class Number 12582)
Dr. D. A. Lopez
Santa Susana Hall 312
Tuesday 4:30PM-6:00PM & Thursday 5:30PM-7:00PM3
Notes for Dr. I. Edwards Classes
Consumer and Producer Surplus
Proponents of free market theory argue that an unfettered free
market (free of government involvement) offers something extra
or surplus to both the consumer and the producer. Consumer
Dr. Ishita Edwards
NOTES ON ELASTICITY
ELASTICITY: Percentage change in X in response to percentage in Y. It
is the ratio of percentage change in one thing when something else
changes by a certain percentage. If X changes by 5% as a result of a
ELASTICITY: Percentage change in X in response to
percentage in Y. It is the ratio of percentage change in one
thing when something else changes by a certain percentage.
If X changes by 5% as a result of a 2% change in Y, the
elasticity between X and Y wi
April 26, 2016
Microeconomics Article Analysis
Honda leads California new-car sales for 2015 by Charles Fleming, February 17, 2016.
This article is based on an economic topic due to Hondas sales this past year in 2015, beating all