Chapter 7 Blog

Key vocab that is mentioned is the willingness to pay and consumer surplus.
Consumer surplus is max amount a buyer is willing to pay for a good minus amount buyer actually pays.
Demand curves of buyers aren't drawn with steps because the changes in buyers dropping out from the new price is very small and becomes essential to create a smoother curve.
Consumers want to pay the least and producers want to receive the most possible.
Different people have different values for the same good.
Efficient markets maximize consumer surplus and producer surplus occurring at equilibrium.
Economic welfare has to do with the amount buyers save, producers make, and how even they are.