Consumer Surplus and Producer Surplus in the Linear Demand and Supply Model

Рет қаралды 183,381

12 жыл бұрын

This lesson explains the concepts of consumer and producer surplus and shows how to identify the areas representing them in a demand and supply diagram. Using linear demand and supply equations, the values of consumer and producer surplus can be easily calculated.

Пікірлер: 42

@shelia7190 2 ай бұрын

this was posted 12 years ago when i was 6 and here i am watching this right before my economics exam lol. thanks so much this was very helpful!

@inthezone9817 3 жыл бұрын

this channel is underrated . your explanation is so clear ! thank you !

@rekhabhatt6829 4 жыл бұрын

Please Sir, upload more video lectures on mathematical economics. Your way of teaching is 👌Best

@enadmhd 4 жыл бұрын

This is a perfect presentation. You are extremely talented

@lelelanaa2500 9 жыл бұрын

Love you man! These are really helping me!

@joannahernsberger7612 9 жыл бұрын

can you please explain intercept of 3 for supply curve? I calculated 4 from Qs = -24+8P.

@rhezzz 8 жыл бұрын

this was awesome thank you so much!!!!

@nicklasnadeau118 2 жыл бұрын

how do you know to start the demand curve from 16 on price and 80 on quantity

@williamma4845 5 жыл бұрын

what happens to the consumer surplus and producer surplus when the supply curve shifts right?

@sereneser5160 5 жыл бұрын

Do we need to multiply the consumer and producer surplus by 1000 since the Q is in thousands?

@faheemzarabi5810 11 жыл бұрын

thanks a lot, great video.

@eyals3962 11 жыл бұрын

Great video. Thanks

@vlad8399 9 жыл бұрын

Thank you!!

@pipstrip4394 7 жыл бұрын

Thnx for the materials

@luckyim6504 8 жыл бұрын

Great video

@amandanieto1632 2 жыл бұрын

Thank you!

@thuliswazwane1992 7 жыл бұрын

Thank you

@maiduongquanghuy296 5 жыл бұрын

who can explain for me what the purple triangle is ?

@ordspider 6 жыл бұрын

what happens to the consumer surplus and producer surplus when the demand curve shifts leftward?

@JasonWelker 6 жыл бұрын

Less demand means a smaller overall market for the good. Both consumer and producer surplus are thus smaller.

@ordspider 6 жыл бұрын

Jason Welker Thank you! Would there be any dead weight loss from the leftward shift in demand?

@JasonWelker 6 жыл бұрын

Only if the market price fails to adjust to the lower demand. If price remains the same following the decrease in demand there will be an excess supply (surplus) and a DWL resulting from the disequilibrium in the market. Once price falls and a new equilibrium is restored the market is once again efficient.

@ordspider 6 жыл бұрын

Jason Welker Omg you’re the best teacher! How would you interpret for example the impact illegal downloading of music (piracy) has on the demand and supply curve along with the producer and consumer surplus?

@JasonWelker 6 жыл бұрын

Are you asking how the illegal downloading of music would affect the demand for and supply of legally purchased music (like iTunes downloads or streaming subscriptions?) Well, when consumers can get something for free, it tends to reduce demand for the substitute good for which they must pay. So the widespread downloading of illegal music torrents would reduce demand for legally purchased music. However, since most legally purchased music is now digital as well (as opposed to CDs), there won't necessarily be an excess supply of legal music; rather, publishers will just have to lower their prices to compete with illegal music, hoping that consumer demand is relatively elastic, which means when price is lowered revenues would increase. Illegal and legal music downloads/streaming are just substitutes for one another. In the absence of any disincentives for illegally downloading music, demand for legal music will be suppressed and publishers will experience smaller sales and revenues.

@venichen1 8 жыл бұрын

Thank you so much! I like my prof but the class is huge so I can't really hear her explanations.

@jefflim8888 10 жыл бұрын

Yup, why is there a price charged for 0 tickets?

@khalanarmand7439 8 жыл бұрын

where did the equations "Qd=80-5p and Qs=-24+8P " come from?

@yunusemrebilgili5847 7 жыл бұрын

Look at the numbers and try to write an equation that shows the realitonship between quantity demanded and price.Quantity demanded can be 80 at highest level if the price = 0.Therefore, you can write quantity demanded=80-a.P . Give any number to price in order to find 'a'.You will reach the equation.Same for quantity supplied.

@hst2549 5 жыл бұрын

I think you meant 80-bP

@HamnaMinahil-ss8uq 3 ай бұрын

How u find equlibrium quantity

@meshackkformula3760 5 жыл бұрын

Very helpfful

@KairiAkiza 12 жыл бұрын

can you explain price intercept of 3 please?

@yemiabadariki9572 7 жыл бұрын

Qs= -24+8p. Let Qs=0 24=8p p=24/8 p=3

@aashutosh9285 4 жыл бұрын

Isn't consumer surplus equal to $160,000 ??? As the quantity is in thousands ?? If not, can anyone explain.....

@sonykhanal1380 5 жыл бұрын

How do we get 5p

@braedenwoodruff6569 5 жыл бұрын

That’s the slope

@georgepassantino8251 5 жыл бұрын

UC Berkeley Econ students thank you!

@ramibecharalebfr 9 жыл бұрын

As a result. Economy serves the richer consumers along with the least expensive producers.

@barchiaschalew4087 Жыл бұрын

a manufacturing firm produced widgets and distributes them to five wholesalers at a fixed delivered price of $ 2.50 per units . To work

@troooooper100 9 жыл бұрын

supply line doesn't make sense, why would it cost more per item to produce something in fact most of the time it mass production costs LESS. WTF.

@masonseymour8887 8 жыл бұрын

+answerOfstupids you are looking at it wrong. the supply curve shows what suppliers are willing and able to sell at a given price. the higher the price the more the supplier wants to supply because they will male more money