×

### Let's log you in.

or

Don't have a StudySoup account? Create one here!

×

or

by: Paige Holub

45

0

6

# Week 4 Notes ECON 2022

Paige Holub

GPA 3.731

Get a free preview of these Notes, just enter your email below.

×
Unlock Preview

Hello everyone. This is the fourth installment of my notes, which include photographs this time! This lesson covers what was discussed in class on 2/15 and 2/17. Please let me know if you have a...
COURSE
Principles of Microeconomics
PROF.
Brian Duncan
TYPE
Class Notes
PAGES
6
WORDS
CONCEPTS
Economics, Micro-economics, micro, Problem Set
KARMA
25 ?

## Popular in Economcs

This 6 page Class Notes was uploaded by Paige Holub on Wednesday February 17, 2016. The Class Notes belongs to ECON 2022 at University of Colorado Denver taught by Brian Duncan in Winter 2016. Since its upload, it has received 45 views. For similar materials see Principles of Microeconomics in Economcs at University of Colorado Denver.

×

## Reviews for Week 4 Notes

×

×

### What is Karma?

#### You can buy or earn more Karma at anytime and redeem it for class notes, study guides, flashcards, and more!

Date Created: 02/17/16
Paige DeWitt-Holub 02/15/16 “Lecture #6 I. Consumer and producer surplus II. Government Policy A. Price Ceiling B. Price Floor” Question 1 Problem set 3 Elasticity between 2 points Difference between producer surplus and profit, increase means a profit, decrease means a loss A. “Producer surplus The difference between the price seller receive for each unit (i.e. governmental taxes) and the lowest price sellers would be without to sell each unit for” – -demand curve – every unit sold at 12, what was the seller and buying thinking about the initial price, initially seller could have sold at 9 and got to sell it at 12 for a profit to them only continuous goods are more difficult to measure than just 1 -add up all the units of how much you actually sold – Producer Surplus is the area of that triangle (1/2bh) PS = ◣ = 1/2bh = 12(4)(4) = 8 “B. Consumer surplus: The difference between price buyers are willing to pay for each unit of a good and the price they actually pay” Consumer surplus = ◣ = 1/2bh = ½ (4)(2) = 6 Price correlates to consumer worth, something with a higher price that is being actively purchased is valued more Water is super important and trumps other items – “diamond water paradox” -> water = quantity high, price low/ diamonds the exact opposite -if water gets too expensive consumers are worse off -value of the last consumer (who bought the diamonds, etc.) is the marginal person but they also set the price -“price is the value to consumers of the last unit sold” “total amount being spend on the good is not the total value.” 1 A. “Price Ceiling – a law that makes it illegal to charge more than a certain price” ex. Lease agreements, food through third world country initiatives, price has to be below the equilibrium price so the price is binding - P.C. price control 1 All works in quotations are taken from the board of Professor Duncan. 1,200 the highest price for 1, consumer surplus is everything above the price and below the surplus, so a small triangle will tell the consumer surplus before the triangle “Before C.S. = a+b+c- ½(12)(1200) = 7,200 P.S. = d+c+f- ½ (12)(720) = 4320 T.S. = C.S. + P.S> = 11.520 After C.S. a (b+d) = 1/2 (10)(1000)= (10)(320) *P.S. f = ½ (10)(600) = 3,000 – lower the profits of the landlords, lost d+c and now it went to consumers T.S. 11,200“ – dead weight, loss of 320 B. “Price Floor – a law that makes it illegal to charge less than a certain price”

×

×

### BOOM! Enjoy Your Free Notes!

×

Looks like you've already subscribed to StudySoup, you won't need to purchase another subscription to get this material. To access this material simply click 'View Full Document'

## Why people love StudySoup

Jim McGreen Ohio University

#### "Knowing I can count on the Elite Notetaker in my class allows me to focus on what the professor is saying instead of just scribbling notes the whole time and falling behind."

Jennifer McGill UCSF Med School

#### "Selling my MCAT study guides and notes has been a great source of side revenue while I'm in school. Some months I'm making over \$500! Plus, it makes me happy knowing that I'm helping future med students with their MCAT."

Bentley McCaw University of Florida

Forbes

#### "Their 'Elite Notetakers' are making over \$1,200/month in sales by creating high quality content that helps their classmates in a time of need."

Become an Elite Notetaker and start selling your notes online!
×

### Refund Policy

#### STUDYSOUP CANCELLATION POLICY

All subscriptions to StudySoup are paid in full at the time of subscribing. To change your credit card information or to cancel your subscription, go to "Edit Settings". All credit card information will be available there. If you should decide to cancel your subscription, it will continue to be valid until the next payment period, as all payments for the current period were made in advance. For special circumstances, please email support@studysoup.com

#### STUDYSOUP REFUND POLICY

StudySoup has more than 1 million course-specific study resources to help students study smarter. If you’re having trouble finding what you’re looking for, our customer support team can help you find what you need! Feel free to contact them here: support@studysoup.com

Recurring Subscriptions: If you have canceled your recurring subscription on the day of renewal and have not downloaded any documents, you may request a refund by submitting an email to support@studysoup.com