Market efficiency at equilibrium
Why equilibrium is efficient
Graphing total surplus
Why other quantities are not efficient
Underproduction (Q < Qe)
Overproduction (Q > Qe)
Deadweight loss
Productive efficiency vs. allocative efficiency
The invisible hand
Consumer sovereignty
Primary sources
The Wealth of Nations by Adam Smith (1776)
Key events summary
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Vocabulary
Unit 2 topics
Unit 2 overview2.1Changes in Demand2.10Tax Incidence and Deadweight Loss2.11Price Controls: Ceilings and Floors2.12International Trade and Public Policy2.2Changes in Supply2.3Price Elasticity of Demand2.4Price Elasticity of Supply2.5Cross-Price Elasticity of Demand2.6Income Elasticity of Demand2.7Consumer Surplus2.8Producer Surplus2.9Market Equilibrium and Efficiency