IN CONCLUSION: WEEK OF SEPTEMBER 16th

Recap

This past week, you were introduced to the concept of economic or total surplus, which is the sum of consumer and producer surplus. In all markets, consumers and producers gain some benefit from participating in markets. This total surplus changes both for consumers and producers as changes in price occur due to changes in supply and demand.

Sometimes though, a deadweight loss occurs. Deadweight loss is just jargon for a loss of output that results when some intervention occurs in markets that reduce the amount of output that consumers demand and producers want to supply. It also occurs if too much of something is produced that no one demanded. The best example is the imposition of taxes on either producers or consumers or both.

Looking Ahead

This next week, you will not cover any new material because you have your first exam. The exam will cover chapters 1-3 and be due by the end of the day Sunday, 9/29. On Wednesday, 9/25 your first study guide will be due and the answer key will be made available at the deadline for you to study. Please make sure to read the study guide instructions carefully prior to submitting it to Canvas.

Please continue to work earnestly on your study guides as they are strongly correlated with your exams and begin studying for your exam.