HBS CORe - Economics for Managers - 4 Markets
1. The loss in value from trades between buyers and sellers that could have
occurred but did not: What is dead weight loss in a market?
2. That the sum of consumer surplus and producer surplus (aka "total wel-
fare") is maximized: What does market equilibrium ensure?
3. Fairness: What does market equilibrium not ensure?
4. Consumers: If a tax is imposed, do consumers or producers pay more if the
demand is inelastic?
5. Producers: If a tax is imposed, do consumers or producers pay more if the supply
is inelastic?
1/1
1. The loss in value from trades between buyers and sellers that could have
occurred but did not: What is dead weight loss in a market?
2. That the sum of consumer surplus and producer surplus (aka "total wel-
fare") is maximized: What does market equilibrium ensure?
3. Fairness: What does market equilibrium not ensure?
4. Consumers: If a tax is imposed, do consumers or producers pay more if the
demand is inelastic?
5. Producers: If a tax is imposed, do consumers or producers pay more if the supply
is inelastic?
1/1
