Re: ZOMG MICRO ECONOMICS WTFFFF
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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
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