Chap 6

So now we will evaluate the price cost. In chapter 1, we have learned about ten principles of
economic, and one of it is markets are usually the good way to organize economic activity.
This is the reason why economist usually oppose
Chap 7:
So, now we move to the next part, the producer surplus. In this part we will consider about
the benefits that sellers gains from the market. First of all. About the definition, producer
surplus is the difference between the the amount the proucer is willing to supply goods for
and the actual amount they receive. And to caculate the producer surplus, we use the
fomula that producer surplus is equal to price received minus willing ness to sell. I will
analyse this formula, first about the willingness to sell, it is the price that the seller sell the
good, below that price, the sellers will leave the market