Any Economics majors here?

[GingerSnaps]

I need help with "The concept of Elasticity" and "Consumer and Producer Surplus".

My Professor calls me Ms. Kerry because we keep having debates on the state of our economy and how Bush has destroyed it.

During my first class I had a huge debate with a student from Korea that loves Bush. The Professor told the class that Koreans were under a dictatorship and that they can relate to Bush because of it. I asked her why she liked Bush and she said because he is a strong leader and the whole class started laughing.

[HEyHEY]

1. My personal economics are majorly fucked. Does that count?

[GingerSnaps]

3. So are mine

The polar bears help :hug:.

[LibertyorDeath]

6. Happy Thanksgiving HEyHEY

:toast:

[rockymountaindem]

2. I'm just studying that now...

what do you need to know?

[GingerSnaps]

4. Tomorrow will be my third class and we have a test

Everything :shrug:

I cant seem to comprehend these two issues for some odd reason. The Concept of Elasticity and Consumer and Producer Surplus.

[rockymountaindem]

10. Do you have a textbook?

If you don't... here's the basics...

Consumer surplus comes from the ability of the consumer to buy goods in an open market. You can determine consumer surplus buy subtracting the price they pay for a good from the maximum price they are willing to pay. This is the area below the demand curve and above the market (equilibrium) price.

Producer surplus is just the opposite. It is the difference between the market price and the absolute minimum the producer will accept for the good. It is the area below the market price and above the supply curve.

Price elasticity can be determined by dividing the percent change in the quantity demanded by the percent change in price. If the result is greater than 1, the good is considered to be elastic. If it is below 1, it is considered to be inelastic. Inelastic goods tend to be necessities, such as fuel and medicine. No matter what the price is, people will generally pay for it no matter what.

Hope that helps! Just wait until you get into trade and comparative advantage. Then comes balance of payments and currencies... that's a bit of a nightmare.

Just so you know, this is my second year in college economics. I'm taking a class called "international economic policy", and last year I took an intro class, so this is the second time through these issues for me. Let me know how your test goes!

[AngryAmish]

11. Listen to this guy

I have forgotten how much I have forgotten.

And get of the f'n internet an study. I mean this in a good way. It took me to grad school to realize that studying worked.

[GingerSnaps]

12. Thanks to all I will get off of the Internet and study.

I bought the book on Friday Issues in Economics Today by Robert C. Guell.

I wish that my University would have offered an intro class. Thank you for explaining everything.

Good Luck with your studies and thanks again.

[LibertyorDeath]

5. Maybe

http://www.fakehumans.com/FuzzyMathVideo.htm

Takes a minute to load

[AngryAmish]

7. Elasticity

It means how desperate people are for a particular product.

Gas is an example, in the short term, for an inelastic good. I have to go to work. If gas is 4 bucks a gallon, I'm still buying. Will I, in the mid to long term get a more fuel efficient car or move? Yes. But in the short term I have to have gas.

Small changes on the supply axis = big changes in price.

Anything more and I'll have to draw you a graph. Or several. Please ask me...I don't get to do econ anymore.

[GingerSnaps]

8. Floor and Ceiling?

:shrug:

[AngryAmish]

9. Do you mean artificial floors and ceilings?

Artificial floors (ie price supports for crops) always result in a surplus. Artificial ceilings (maximum price for tortillas in Mexico) always results in shortage. Both of these are inefficient. However, we transfer wealth (taxes) to producers to compensate them of the need is perceived to be large enough. Or transfer wealth to producers (floors) through price.

Edited for spulling.