Consumer & producer surplus

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Intros
Lessons
  1. Consumer & Producer Surplus Overview:
  2. Consumer Surplus
    • Willing to pay vs actually pay
    • Algebraic Calculation of Consumer Surplus
    • Graphical Calculation of Consumer Surplus
    • An Example
  3. Producer Surplus
    • Price producer receives vs minimum price producer accepts
    • Algebraic Calculation of Producer Surplus
    • Graphical Calculation of Producer Surplus
    • An Example
  4. Economic Surplus
    • The total benefit from consumer and producer
    • Sum of consumer surplus and producer surplus
    • Goal is to maximize economic surplus
    • An Example
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Examples
Lessons
  1. Finding the Consumer Surplus
    Suppose the demand curve is P = 500 - 20Q  and  P = 200 + 5Q.
    1. Find the market equilibrium
    2. Find the consumer surplus
  2. Suppose the demand curve is P = 800 - 5Q  and  P = 800 + 5Q.
    1. Find the market equilibrium
    2. Find the consumer surplus
  3. Finding the Producer Surplus
    Suppose the demand curve is P = 400 - 20Q  and  P = 300 + 5Q.
    1. Find the market equilibrium
    2. Find the producer surplus
  4. Suppose the demand curve is P = 300 - 3Q  and  P = 250 + Q.
    1. Find the market equilibrium
    2. Find the producer surplus
  5. Finding the Economic Surplus
    Suppose the demand curve is P = 500 - 10Q  and  P = 300 + 5Q.
    1. Find the market equilibrium
    2. Find the consumer surplus
    3. Find the producer surplus
    4. Find the economic surplus