Chapter 7: Consumer Surplus, Producer Surplus and the Efficiency of Markets - Part 2

Total surplus 0:57
Who buys and who sells in a free market? 5:00
Is the right quantity produced in a free market? 14:35

[Hedgehog]

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[aswathiraghunath]

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[rudrakhandelwal]

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[joemob]

I benefited a lot from your video lesson thanks a lot. I wonder if you have a video about Externalities and public goods? would u kindly share the link?

[jameswu]

Hel Sir, thank you for the video. do you have any other videos explaining Application: International Trade?

[levirickoMusic]

Hi.. sorry am late for class but who got chapter 8 plis?

[larkanikahsomersille]

Hi sir! Thank you so much. Can I ask for help? Our prof didn't teach these to us. Thank youuuu
3. A super typhoon greatly affected the mango farms in Philippines by making the mango crops taste super sour and some were developed prematurely and were scattered on the ground making them not eligible for sale due to defects. (a) Explain what happens to the consumer surplus in the market for mangoes. (b) Explain what happens to the consumer surplus in the market for mango shake. (c) Illustrate your answers using equilibrium diagram with the consumer surplus diagram in one

[khushiteotia]

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[AustinNO]

Hi @DrAzevedoEcon! I really love your videos and they’ve been of great help in my understanding of the concepts I’m currently learning in my Principles of Economics class.
I was wondering, as a suggestion for future videos, if you could cover Chapter 8 or Deadweight loss. It would be much appreciated! Thank you!

[xpotatox]

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[bbeeyangli]

so, i came to ch 7 ! ! thank you! i like your course btw. they are the best economics course.
my thinking about this chapter:
Currently, it seems evident that economics is still in a very early stage, lacking an optimal mathematical correspondence. Similar to how calculus is matched with Newtonian mechanics, current statistics theory in mathematics is weak. The flaws in this part of economic theory include:
1. Economics has not proven whether total surplus is the most important variable for human being, which obviously it is not. If it's not, then it's not necessary to completely follow market theory.
2. Consumer surplus does not represent actual happiness or well-being; it's just a theoretical abstract variable. Sometimes consumer surplus only indicates that a person is relatively wealthy, hence having a higher budget or he has little knowledge before so value it high(or low). Additionally, the happiness brought by material goods is very limited.
3 Consumer surplus sometimes(very offen) is fake. Because consumers might only realize how good or bad a product is after purchasing it. Moreover, as perceptions change, the consumer's valuation fluctuates. Maximizing consumer surplus based on mistaken perceptions can actually be detrimental.

So a conclusion emerges based on 3:
If statistically most people are inclined towards evil or ignorance, then a free economy would lead to the maximization of errors!

So, for instance, a free market may not necessarily make the greatest works of art the most profitable, but rather favor those that appeal to the tastes of the majority, maximizing consumer surplus. Therefore, the most popular products are not necessarily the best, but those that maximize consumer surplus at the statistical level for most people's valuation.