John is looking for an Economic book, because he is not very happy with his accumulated grade in this course. As he has a limited budget, he is willing to pay no more than $ 50.
a. He goes to the local Library and looked at the place where some books were sold. He found an economic book for “dummies” at $ 20. Which would be his consumer surplus in the case he buys it?
b. As he considered the book at the Library too basic, he explored used books at Internet and found a popular online bookstore that was selling a good textbook at $ 80.
What do you think he did?
NOTE. Before answering watch videos.
Kahn. Consumer Surplus Introduction. http://youtu.be/_6kwhF6hoqQ
Total Consumer Surplus as area: http://youtu.be/RBUBIRtn0xQ
Kahn Producer Surplus. http://youtu.be/-V-Y5klejSg
How to calculate deadweight loss. https://youtu.be/kF1c8ujpTYY
Kahn. Rent Control & Deadweight Loss. http://youtu.be/ZrNKHCCVfB8
Kahn. Taxation & Deadweight Loss. http://youtu.be/NuLlNAdrom4