ZOMG MICRO ECONOMICS WTFFFF

[wdead]

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hi bbv,

i have an allegedly difficult midterm on this topic tomorrow.

i would appreciate your thoughts on:

supply and demand
elasticity
aggregate demand curves
social surplus & dead weight loss
intertemporal consumption models
why i am not 'cramming' (LOL) for this with hot chicks

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i majored in econ. its super easy.
Supply and Demand, just remember, Equilibrium occurs where S=D, if there is too much of one or the other, a surplus or deficit forms

Elasticity %change P/% change in Q. land is perfectly inelastic. E=100000000000000000000, because no matter what the price change, there will be no change in quantity consumed.
Stuff like wheat is very elastic, if someone sells wheat for a lot more than the other farmer, no one will buy it from him. E is near zero

Aggregate Demand Curces, just add all the demand curves horizonally

Social Surplus=Net benefit to society, this stuff is created when benefits of something outweight its costs, like giving money to people who live near airports to make them happy about their [censored] conditions

Intermodal Consumption Models- Pretty sure this just means how consumption changes over time

Remember, if you are ever confused, just remember when Marginal Cost=Marginal Benefit, we have achieved the efficient solution. Micro is so easy if you dont do well you are a moron.

/serious post

[wtf5]

ur subjects are so easy o.o

[NT!]

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Social Surplus=Net benefit to society, this stuff is created when benefits of something outweight its costs, like giving money to people who live near airports to make them happy about their [censored] conditions

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i thought social surplus was the net benefit to society of having something available on the free market? i.e. on a S/D graph, the area of the triangle between actual P/Q and the S/D intercepts.

[dkgojackets]

would social surplus be the same thing as positive externalities? Deadweight loss is what society loses because of less transactions occuring after a tax is imposed.

BTW Im in microecon this semester too and we have a midterm thursday

supply and demand wtf easy?

elasticity is %change in quantity over %change in price. I believe inelastic is over one, elastic below one, unit elastic = 1.

[wdead]

yea thats right.
here let me put it this way.
consumer surplus is when someone buys a product for $5 dollars that they value at 6 dollars. they have a surplus of 1 dollar.
producer surplus is when someone sells something for 5 dollars they value at 3 dollars.
Essentially, society (consisting only of buyer and seller) has gained 3 dollars worth of utility from this transaction. thus, there is a social surplus.
Note this can happen where both buyer and seller are happy.

Social surplus is thus consumer surplus+producer surplus.

So this will be look like the consumer surplus triangle (which is right) plus the producer surplus triangle (which is also right), creating a triangle pointing right on the S and D graph.
Note: Most government activities produce a NEGATIVE social surplus for society. Seriously.

[Karak567]

wal-mart produces nice social surpluses

but they are evil and the government is good, right?

lololol

[NT!]

[ QUOTE ]

consumer surplus is when someone buys a product for $5 dollars that they value at 6 dollars. they have a surplus of 1 dollar.
producer surplus is when someone sells something for 5 dollars they value at 3 dollars.
Essentially, society (consisting only of buyer and seller) has gained 3 dollars worth of utility from this transaction. thus, there is a social surplus.

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yeah that's what i thought it was, the other way you explained it sounded kinda weird

honestly i was expecting photochops of milton friedman secksing penguins ITT but this is cool too

[Karak567]

if you do some googling im sure you can find some graphs that will show social surpluses in a "micro way" pretty clearly

i find that is an easier way of looking at it, sometimes

[Borodog]

He probably was a penguin [censored].

THANKS FOR THE WITHHOLDING TAX MILT YOU CHICAGO SCHOOL DOUCHEBAG

[Borodog]

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land is perfectly inelastic. E=100000000000000000000, because no matter what the price change, there will be no change in quantity consumed.

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Wait. What?