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Consumers,Producers,
andtheEfficiencyofMarketsEconomicsPRINCIPLESOFN.GregoryMankiw7
Inthischapter,
lookfortheanswerstothesequestions:Whatisconsumersurplus?Howisitrelatedtothedemandcurve?Whatisproducersurplus?Howisitrelatedtothesupplycurve?Domarketsproduceadesirableallocationofresources?Orcouldthemarketoutcomebeimprovedupon?1
SomenormativequestionsTheconsumershopeforalowerpriceallthetime,andtheproducershopeforahigherprice.Shouldthepricebelowerorhigher?Whatisthe“good”price?Whatistheproperway
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