PPT-Elasticity and Consumer Surplus

Elasticity Introduction Elasticity Price Elasticity Elasticity Principles Arc elasticity Midpoint method Intermediate Point elasticity Elasticity What we add in ECON 5340 Elasticity Proportionate Change in Q for a Proportionate change in P. Who gains and who loses when prices change?. 1. The Efficiency of Competitive Markets. Economic efficiency . A market outcome in which the marginal benefit to consumers of the last unit produced is equal to its marginal cost of production, and in which the sum of consumer surplus and producer surplus is at a maximum.. Excise Taxes and Efficiency. Theory of Consumer Choice. Sample Questions. AP Economics. Mr. Bordelon. Consumer Surplus and . The Nutcracker. Student. Willingness to Pay. Lois. $100. Miguel. 90. Nancy. Consumer and Producer Surplus and Internal Rate of Return. Daniel Mason-D’Croz. Sherman . Robinson. Welfare Analysis. We need to compute benefits and costs associated with policy choices. Benefits and costs occur over long time periods. Shane Murphy. www.lancaster.ac.uk/postgrad/murphys4/. s.murphy5@lancaster.ac.uk. Elasticity. Questions 1-3 deal with elasticity, specifically, we are looking at the price elasticity of demand. . The price elasticity of demand is the percentage change in quantity demanded given a percentage change in price. We can write this mathematically as: . “…while the law [of competition] may be sometimes hard for the individual, it is best for the race, because it ensures . the survival . of the fittest . in . every department.” . Andrew . Carnegie. Who gains and who loses when prices change?. 1. The Efficiency of Competitive Markets. Economic efficiency . A market outcome in which the marginal benefit to consumers of the last unit produced is equal to its marginal cost of production, and in which the sum of consumer surplus and producer surplus is at a maximum.. Excise Taxes and Efficiency. Theory of Consumer Choice. Sample Questions. AP Economics. Mr. Bordelon. Consumer Surplus and . The Nutcracker. Student. Willingness to Pay. Lois. $100. Miguel. 90. Nancy. . Demand, and Welfare Analysis. Price Sensitivity of Demand. Elasticity of demand. Percentage change in demand. F. rom a given percentage change in price. 2. Price-Elasticity Demand Curves. Elastic demand, |. Fundamentals of. Consumer Choice. Fundamentals of Consumer Choice. Factors affecting choice. :. Limited income necessitates choice.. Consumers make choices purposefully.. One good can be substituted for another.. Fundamentals of. Consumer Choice. Fundamentals of Consumer Choice. Factors affecting choice. :. Limited income necessitates choice.. Consumers make choices purposefully.. One good can be substituted for another.. June 11 qn9. ‘On a typical train journey, there could be as many as twenty different fares being paid by passengers travelling between the same two stations.’. Using the concept of price discrimination to help you, explain how and why this might happen. . Arsens. Jules . Dupuit. . in 1844. Later . Alfred Marshall . developed this concept in his famous work . ‘Principles of Economics'. . . In our daily life, we consume many commodities that are available cheap. Example: salt, match box news papers, etc. The utility from these commodities is so high that we would be prepared to pay higher prices for them than we actually pay. . Daniel Mason-D’Croz. Sherman . Robinson. Welfare Analysis. We need to compute benefits and costs associated with policy choices. Benefits and costs occur over long time periods. “Discounting” to compute present value of a time stream of... ANH2022 – Learning Labs. Chen Zhen . University of Georgia . Theory of Consumer Economics. . First principle: when price goes up, demand comes down. . If you plot price on the vertical axis against demand on the horizontal axis, you get what we...