ZOMG MICRO ECONOMICS WTFFFF
 

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

Re: ZOMG MICRO ECONOMICS WTFFFF
 

Re: ZOMG MICRO ECONOMICS WTFFFF
 

http://img522.imageshack.us/img522/2...inationnc0.jpg

Re: ZOMG MICRO ECONOMICS WTFFFF
 

Seriously, though, I took microeconomics two years ago. I don't remember jack crap about it other than the unbelievably thick accent my professor had. I gave up trying to understand her and stopped going to class.

I wound up with an A.

Re: ZOMG MICRO ECONOMICS WTFFFF
 

LoL wouldnt this be a lockable thread in OOT and Student Life?

BBV4L however welcomes you sir!

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im failing so i cant help you.

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Sometimes when I'm at a restaurant and I demand something loud enough, people "supply" it for me. Does that help?

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[ QUOTE ]
LoL wouldnt this be a lockable thread in OOT and Student Life?

BBV4L however welcomes you sir!

[/ QUOTE ]

thank you, nice to be here

Re: ZOMG MICRO ECONOMICS WTFFFF
 

[ QUOTE ]
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

[/ QUOTE ]

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

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ur subjects are so easy o.o

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[ QUOTE ]

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

[/ QUOTE ]

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.

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im an econ major

cool stuff, huh?

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im failing so i cant help you.

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49 dollar buy-out paid in cash tomorrow?

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[ QUOTE ]
LoL wouldnt this be a lockable thread in OOT and Student Life?

BBV4L however welcomes you sir!

[/ QUOTE ]


Asking for help with homework/schoolwork is against the protocol here too, but ol' wily NT managed to be elusive enough to get by.

Re: ZOMG MICRO ECONOMICS WTFFFF
 

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.

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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.

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wal-mart produces nice social surpluses

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

lololol

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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?

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I think E=MC^2

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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.

[/ QUOTE ]

Wait. What?

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uhhh

this depends on how you define "land consumption"

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My dick is perfectly elastic. Wait. What?

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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?

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uhhh

this depends on how you define "land consumption"

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lets just say it involves nomnomnom.

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[ 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.

[/ QUOTE ]

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

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okay think of it like this. my butt is in supply and in demand. get it now?

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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

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He probably was a penguin [censored].

THANKS FOR THE WITHHOLDING TAX MILT YOU CHICAGO SCHOOL DOUCHEBAG

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[ QUOTE ]
okay think of it like this. my butt is in supply and in demand. get it now?

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supply is much larger than demand imo.

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okay think of it like this. my butt is in supply and in demand. get it now?

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supply is much larger than demand imo.

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9.0

Would've been higher but you get no points for difficulty.

Re: ZOMG MICRO ECONOMICS WTFFFF
 

[ QUOTE ]
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

[/ QUOTE ]

Supply and Demand:

Demand is how much consumers are willing to buy. As price goes up, quantity demanded goes down - downward sloping.

Supply is how much producers are willing to sell. As price goes up, quantity supplied goes up - upward sloping

Equilibrium is where S = D, and you get equilibrium price and quantity. Analysis is performed based on demand or supply shocks and that is where you get changing prices and changing quantities.

Elasticity:

There are several forms, but the easiest is price elasticity of demand = % change in quantity demanded / $ change in price. Elasticity can get complex, so you may want to look into that on your own.

Aggregate demand curves:

sum total of all planned expenditures in the economy. These are close to other demand curves, but hold alot more in them based on your analysis.

Social Surplus & Dead Weight Loss:

Not sure what social surplus is, but it sounds like it could be related to consumer surplus.

Dead Weight Loss comes from monopolies where they try to maximize profits, but they restrict output.

Intertemporal Consumption Models:

This is based on when you decide what to do with your income, you can consume all now or save part for the future.
You have 2 time periods, 1 and 2. You have consumption, C1 and C2, Income M1 and M2 and interest r In Period 1, you can use your entire income for consumption C1. So your C1 = M1 + M2/(1+r). Or you can save all of your income until period 2 and have C2 = M2 + M1(1+r). The closer you are to C2, the more patient you are and the closer to C1, the more impatient.

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okay think of it like this. my butt is in supply and in demand. get it now?

[/ QUOTE ]

supply is much larger than demand imo.

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urded i swear

http://i117.photobucket.com/albums/o...ul07014sw2.jpg
http://i117.photobucket.com/albums/o...ul07027fv6.jpg

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[ QUOTE ]
[ QUOTE ]
im failing so i cant help you.

[/ QUOTE ]

49 dollar buy-out paid in cash tomorrow?

[/ QUOTE ]

kiss my ass ill bribe milloman b4 i buy out

Re: ZOMG MICRO ECONOMICS WTFFFF
 

its helpful to remember that supply/demand curves are completely independent of one another. i remember lots of questions relating to one of the curves being effected, and trying to see if students understand that the other is not changed, ie:

the materials required to produce pencils have become much more expensive, what happens to the demand of pencils?

well the demand doesn't change. people still want to buy y pencils for x dollars. the supply curve changes, which effects the equilibrium price and number of pencils sold, but it doesn't have any effect on the demand curve for pencils.


this is probably pretty basic for you but it was definitely on a few of my micro exams

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okay think of it like this. my butt is in supply and in demand. get it now?

[/ QUOTE ]

supply is much larger than demand imo.

[/ QUOTE ]

9.0

Would've been higher but you get no points for difficulty.

[/ QUOTE ]

/insert joke about same score after bagging your wife.

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that sounds like something this tricky bitch would ask. the demand curve doesn't change but the quantity demanded does.

she is really mean btw, every time i ask her a question she thinks i'm making fun of her

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[ QUOTE ]
[ QUOTE ]
okay think of it like this. my butt is in supply and in demand. get it now?

[/ QUOTE ]

supply is much larger than demand imo.

[/ QUOTE ]

this means there is a surplus and consumers have the upper hand imo.

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[ QUOTE ]
[ QUOTE ]
[ QUOTE ]
okay think of it like this. my butt is in supply and in demand. get it now?

[/ QUOTE ]

supply is much larger than demand imo.

[/ QUOTE ]

this means there is a surplus and consumers have the upper hand imo.

[/ QUOTE ]

prices for that ass are definitely dropping imo.

i got a piece for a slightly used nickle

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nt!,
, is it true you are almost as fat as dids?

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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?

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The supply of land is finite and non changing. Even if
price of land is one dollar, more cannot be produced. Lots of people will want it, and there will be a land shortage, so price will eventually go up (this is why manhattan real estate prices are so high).
If land is expensive, no one will want it, but the quantity of land does not change.

Obviously, ice cream is not like this. If lots of people want to buy ice cream, we can just make more of it, so total quantity of ice cream is very dependent on its price. For land, this is not the case.

I should not have said quantity consumed, that was wrong. What I meant was simply changes in prices of land will not lead to changes in quantity of land SUUPLIED, where as with most things: wine, cars, clothes, etc, have normal price elasticities, where if everyone wants jeans and they arent enough of them, someone will produce more.

ALso, I have only really talked about Supply Elasticities. Elasticities can also refer to demand.

ALSO, elasticity is percent change in Q over percent change in P, not what i wrote earlier. I always mix that up for some reason

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you know it's sad when i would rather take your micro mid-term tomorrow than sit here and do all the regression analysis on this panel data project im working on in SAS right now

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that sounds like something this tricky bitch would ask. the demand curve doesn't change but the quantity demanded does.

she is really mean btw, every time i ask her a question she thinks i'm making fun of her

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SHE WILL DEFINITELY ASK THIS. ALL ECON PROFS DO.
This is equvalent to talking about things that SHIFT the curves (called REAL factors, like a change in consumer preferences, the cost of inputs (gas), etc) and things that cause MOVEMENT along the curves, like changes in prices of the commodity