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  • Supplementary Notes of Topic 3

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    Lap Sang Ho
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    This document provides supplementary notes on the price mechanism and market efficiency. It includes definitions of key economic concepts like equilibrium quantity, price, consumer and producer surplus, and total surplus. It also notes that in an efficient market, quantity demanded equals quantity supplied at the equilibrium point where marginal benefits equal marginal costs, and there is no deadweight loss from the market.

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    This document provides supplementary notes on the price mechanism and market efficiency. It includes definitions of key economic concepts like equilibrium quantity, price, consumer and producer surplus, and total surplus. It also notes that in an efficient market, quantity demanded equals quantity supplied at the equilibrium point where marginal benefits equal marginal costs, and there is no deadweight loss from the market.

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    3 views1 page

    Supplementary Notes of Topic 3

    Uploaded by

    Lap Sang Ho
    This document provides supplementary notes on the price mechanism and market efficiency. It includes definitions of key economic concepts like equilibrium quantity, price, consumer and producer surplus, and total surplus. It also notes that in an efficient market, quantity demanded equals quantity supplied at the equilibrium point where marginal benefits equal marginal costs, and there is no deadweight loss from the market.

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    © All Rights Reserved
    Download as PDF, TXT or read online from Scribd
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    Supplementary Notes for Topic 3: The Price Mechanism - Market Efficiency

    200 600
    Where is:
    Equilibrium quantity Equilibrium price
    Consumer surplus Producer surplus
    Total surplus Total benefit
    Total expenditure Total revenue
    Total production cost

    The market is efficient?

    At equilibrium, Qd=Qs=Qe= _______


    1) At Qe= _______ units, the MB=MC= _______
    2) There is not any deadweight loss (i.e. MC unequal to the MB) in the market
    3) the total surplus is ______________ .

    This market is an ______________ market.

    The market is efficient?

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