ECON 101 Lecture Notes - Lecture 14: Tax Wedge, Marginal Cost, Demand Curve
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ECON 101 Full Course Notes
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Econ 101 - lecture #14 - producer surplus, market efficiency, and quantity of tax. The difference between what a producer receives from trade and the minimum amount the producer is willing to accept is called the producer surplus. Consider an imagined market, as presented in table 1. Seller costs = the minimum price sellers are able to accept = marginal cost function. The seller costs of an imagined comic bookstore market. If we analyze the table, we can conclude that. When price is greater than 45, five people will sell. When price is greater than 35 but under 45, four people will sell. When price is greater than 25 but under 35, three people will sell. When price is greater than 15, but under 25, two people will sell. When price is greater than 5, but under 15, one person will sell. When price is under 5, nobody will sell.
