Macroeconomics

[bgfan]

I hate to be a bother, but I seem to be having some issues with my Macroeconomics course. I have an exam coming up, and am failing miserably to grasp problems such as this:

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If anybody would be able to explain to me how to solve the problem step by step, that would be fantastic.

 

[Harkon Haakonson]

Ah I love Macroeconomics. Not my craft though, so I wouldn't feel comfortable solving this, but I'm sure there's some Economy wizards around?

 

[bgfan]

I really hope so 

 

[Swordmaster]

Take the point at 40 dollar price. Only 100 units are demanded, therefore only 100 units were provided. Still, at the same point move towards the supply curve. You can see that at that price producers are able to produce 400 units. 400-100 = 300. Voila.

If the question asks about the money, just multiply 300 with 40.

Hold on, it doesn't ask about the surplus of goods. Silly me. The consumer surplus is the interval between the equilibrium and the current stated price. The equilibrium seems to be on 30 dollars and 300 units, but it should've stated in the graph just like the other dotted lines.

 

[bgfan]

What about this one? How would I reach the answer?

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[Swordmaster]

Total surplus is consumer surplus+producer surplus. Meaning the upper plus lower intervals from the equilibrium point.

Consumer plus is ((40-30)*300)/2 = 1500

Producer surplus is ((30-0)*300)/2 = 4500 so the total surplus is 6000.

 

[bgfan]

Alright, how about this?

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[Swordmaster]

Well, that's the extend of my macroeconomics knowledge. I may say something but it'd probably be misleading. I'm taking a course about this this semester, hopefully learn more about it.

 

[user1324865215]

**** Paul Krugman. I had the same textbook adopted for high school and it was unreadable. Micro is so much better.

 

[Mage246]

Secrets of Economics

 

[AWdeV]

I don't believe in macroeconomics. Microeconomics? Sure, those are real and observable, but macroeconomics is just a theory and a shoddy one at that.

 

[Swordmaster]

Agreed.

 

[Paxton]

I don't want to split hairs here, but isn't the supply-demand thing from the micro-economics branch?