ZOMG MICRO ECONOMICS WTFFFF

[whoisthedrizzle]

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

[kafkaFan1]

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WOW, AMAZING

[HesseJam]

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WOW, AMAZING

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Good example for a complete price-inelastic demand. No matter how cheap you offer yourself, the demand of these three remains zero.

[Slaladin]

just to clear something up, running regression models is very boring. they never make sense and you always get a lousy R bar. [censored] them. sorry, i'm on econ tilt.

[Quicksilvre]

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.

[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.