ZOMG MICRO ECONOMICS WTFFFF

[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.

[Karak567]

im an econ major

cool stuff, huh?

[Karak567]

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im failing so i cant help you.

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49 dollar buy-out paid in cash tomorrow?

[Chump Change]

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

BBV4L however welcomes you sir!

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

[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

[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?

[kipin]

I think E=MC^2

[Karak567]

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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"