3.2 — Market Competition and Surpluses — Class Content

Contents

Overview

Today we discuss the competition that takes place in markets, and discuss the idea of consumer and producer surplus. We will also do some numerical and algebraic examples of solving for equilibrium and surpluses. # Readings

Slides

Practice

Today we will be working on practice problems. Answers will be posted later on that page.

Assignments

Exam 2

We are ready for Exam 2. However, this semester has an awkward schedule, for two reasons: first is Section 2 is a full week behind Section 1 due to Spring Break days, and second is that next week is “Wellness week” and I cannot give an exam during that week. Thus:

We will proceed with 3.1 and 3.2 for the next two classes (Wed Mar 24 and Mon Mar 29) and have a review session on Wed Mar 31 for Exam 2. Topics 3.1 and 3.2 will not be on Exam 2, but will be on the Final Exam.

We will catch up and finish 2.6 on Tues Mar 30, and have a review session on Thur April 1.

Both sections will have Exam 2 the week of April 5.