ECON 2000 Chapter : SI Worksheet 11
Document Summary
P-wts the amount a seller is paid for a good minus the cost of providing it. Willing to sell 2 4 6 8 10. Marginal seller: the seller who would leave the market first if the price was any lower. Total surplus: ts= cs +ps or value to buyer cost to seller. Cs = value to buyer amount paid. Ps = amount received cost to seller. Efficiency: maximizing total surplus received by all members of society. Two assumptions: no market power, no externalities. Laissez faire vs. government involvement (the world is not perfect): -you can"t assume either of those things stated above. Questions: determine the amount of producer surplus generated in each of the following situations, seve owns an auction-based clothing store. He is willing to sell a t-shirt for at least . -----10 10 = 0: alberto owns an auction-based cd store and is willing to sell a used copy of nirvana"s greatest hits for at least .
