Lecture18(20051117) Class today p167-179 列 Chapter 7: Efficiency and Exchange Slide 1
MB MC Chapter 7: Efficiency and Exchange Slide 1 Lecture 18 (2005.11.17) ◼ Class today p167-179
H Efficiency and Exchange C村APTR MB MC
MB MC Efficiency and Exchange
Overview a Chapter 7 develops the concept of efficiency and explores why many tasks are best left up to the market presents the concept of economic surplus in detail and looks at how unregulated markets can generate the largest possible economic surplus Chapter 7: Efficiency and Exchange Slide 3
MB MC Chapter 7: Efficiency and Exchange Slide 3 Overview ◼ Chapter 7 develops the concept of efficiency and explores why many tasks are best left up to the market. It presents the concept of economic surplus in detail and looks at how unregulated markets can generate the largest possible economic surplus
Overview a The chapter also discusses why intervention in the market can lead to undesired or unintended consequences however, social justice is distinguished from efficiency Finally, the chapter discusses how intervention in a market can lead to increased economic surplus Chapter 7: Efficiency and Exchange Slide 4
MB MC Chapter 7: Efficiency and Exchange Slide 4 Overview ◼ The chapter also discusses why intervention in the market can lead to undesired or unintended consequences; however, social justice is distinguished from efficiency. ◼ Finally, the chapter discusses how intervention in a market can lead to increased economic surplus
Review concepts Consumer surplus S Producer surplus .Economic surplus D Equilibrium Price .Equilibrium quantity Quantity) Chapter 7: Efficiency and Exchange Slide 5
MB MC Chapter 7: Efficiency and Exchange Slide 5 Producer surplus Consumer surplus D S Review concepts Quantity) Price •Economic surplus •Equilibrium Price •Equilibrium quantity