课件lecture 7 printecon10004微观经济学导论.pdfVIP

Welfare in perfectly competitive markets How do we measure the society’s well-being from their transactions in markets? • For the demand side of the market, we first compute the sum of individual benefits by totalling up their willingness-to-pay, then subtract the amount that they actually pay • S e the market demand curve maps out prices at which buyers are willing to pay (MB), the area under that demand curve that lies above the price, represents their collectiv benefit (or gains from trade) Con