Markets: Consumer and Producer Surplus- Micro Topic 2.6

Hey internet! Thank you for watching my videos. Recently a student requested a lock of my hair. Weird huh? In this episode I talk about how competitive markets allocate resources and consumer and producer surplus. I also talk about inefficiency and deadweight loss. Make sure to practice calculating CS, PS, and DWL. Let me know if you think I should give this guy my hair.
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The answers to the practice multiple-choice questions are below.
1. A
2. B
3. C

[@JacobAClifford]

Do you think I should give or sell my hair? Let me know. The answers to the practice multiple-choice questions are below. 1. A 2. B 3. C

[@ramil17998]

Seems to me you should find out the monetary equivalent for breaking this ethical stance. This money could be used to solve other ethical problems. You then account for it in your S&D curve and find a new equilibrium! P.S. Oh man, it's been 4 years since I took the AP test, but I still find this channel to be awesome

[@anuragpandey8996]

No sir you should not solve his problem like that. Instead, talk to him more if u can

[@farronabysswatcher1881]

Be careful, he may use your hair to clone an army of good economic teacher and replace all known bad econ professors in the universities.

[@mariejohannagarganera9698]

No! I smell some voodoo sh*t here

[@keithkeeler2434]

What's the worst that could happen? lol lol

[@takoyakilover8713]

This guy used the opportunity of the creepy email to make another video just for us. God bless u

[@Akshay-fw6yc]

That's the opportunity Cost for this video

[@deathrate5978]

@@Akshay-fw6yc nice one XD

[@julluj5624]

Jacob Clifford has MONOPOLY on his HAIR!

[@gruugraceee6963]

For anyone who could not answer 2 At 3$, consumer surplus= (1/2)*base*height = (1/2) * (3-0)*6= 9 $ At new price 6$, consumer surplus = (1/2)*(6-0)*12$= 36$ Total consumer surplus (mean change in consumer surplus) = $36 - $9= 27$ So it is B

[@willtaylor3815]

Where did u get 6 for the first oart

[@sizwe.babye.c]

Our Q was 6 and our height for the whole consumer surplus is 9 , half the base of 6 = 3 Thus 3*9 = 27

[@Calvin_woods.]

life saver

[@Holly-xk5yk]

YOU ARE A SAVIOUR!!!!!! I passed my test and my teacher was so surprised and happy for me... all bcoz of you MR. CLIFFORD !!!

[@ConstantChristine]

Hey man thought I’d let you know I passed microeconomics for my online bachelors degree with exemplary scores and you’re the only guy I watched. Took me longer than I wanted because math stuffs is hard for me but I finished micro on to macro with your help

[@angelthinks1469]

Hey I'm having trouble cause of the math too. Any tips

[@sarvarabrorxojaev9205]

@@angelthinks1469 ask google

[@flywithky977]

WGU?

[@ConstantChristine]

@@flywithky977 yes

[@ConstantChristine]

@@angelthinks1469 sorry I literally just saw this and can't be too much help, this and crash course helped me a lot

[@kells137]

5 minus of your videos worth 3 hours of my class, with even better understanding of the course. Thank you very much Mr. Clifford.

[@jeffwilken7241]

I am well out of high school and college, but still love watching and learning from your videos. You’re a world-class teacher, my friend. Thanks for what you do! ...and if it were me, I’d ask for his teacher’s email so I could convey to him directly that, although sending a lock of my hair might be inappropriate, he should give this student some extra points for his above-and-beyond efforts...and for inspiring the making of this video.

[@amitnagnyal9279]

thanks sir ,In 10 minutes you actually covered stuffs of 5 pages and your way of teaching is very eye catching .I wish you keep creating such videos

[@hafsahkhalid3592]

U deserve so much more recognition! I’ve said it once I’ll say it again- best econ teacher !

[@Brandon74350]

I am very distracted by the half-gallon of milk on that shelf...

[@ytp1210]

Dammit, now I'm distracted

[@yahyamotara7590]

Dag nabbit. This has me thinking. I'll never be able to concentrate 🤣🤣🤣

[@yahyamotara7590]

Tis' remains of a Legendary Battle between Mr.Clifford and Gigantic Gallon.

[@periodt6795]

Demand video 😂

[@kirubelfanta2367]

Thank Gog I saw this comment after I was done watching

[@shraddhavora1898]

You are amazing ! I love Economics but learn and remember even more because of your way of teaching.. The first video that I saw was... MR DARP.. I still remember it after a year or so.. Keep posting !

[@DarlaPurce]

I need you to better organize these playlists. Having the summary and practice questions first makes it difficult to navigate when casting to my TV. I LOVE YOUR VIDEOS! I purchased the Ultimate Review Packet and the practice is great. I am an older student, much older student, my grasp of how KZbin works is limited. Also, my math skills are 30 years old and long gone, so I could use a little more math explanation. Will share to FaceBook after finals. I made the mistake of taking college Microeconomics in the Summer 2 semester that is only 6 weeks long. You have saved me from being completely lost!

[@FunnyAsian00]

YOU MUST BE killing at investing stocks with the knowledge you have. Whenever I get stuck with learning basic economy (to help me to invest) I just watch your videos and I go OHHHHHHHHHHHHHHHHHHHHHHHHHHHHHHHHHHHHHHHHHH Thank you, Mr. Clifford and be safe - Socio Major Canadian Dude

[@MizzRache83]

I spent hours on this. Hours. You explained it in a 10 minute video. Thank you very much! Instant subscriber!

[@morningawesome]

consumer surplus -- difference btw what consumers are willing to pay and what they do pay (at equil). (top half of the triangle) 1/2 x base x h e.g. Bea is willing to pay $100 for a relic, but the market equilibrium is $40 (between D and S), and therefore she pays $40. $60 is the consumer surplus. producer surplus - difference btw the price what producers are willing to sell for (at equil). (bottom half of triangle) 1/2 x base x h e.g. Ava wants to sell a relic for $10, but the market price is $40, and therefore she sells it for $40. The $30 is the producer surplus. Hence total surplus would be $60 + $30 = $90.

[@CTULionel]

Brilliant video, my lecturer couldn't explain it in half a semester but you just did in 10 minutes.

[@riyab8786]

Omg just in time for my test tomorrow

[@bethaniewarren7199]

Thank you for this great video. I was asked by my instructor, or the class was asked to post a discussion post about the understanding of Consumer and Producer Surplus for my Macroeconomics class. Your video wasn't boring and actually fun to learn from! Thank you! It helped a lot!

[@gbnas]

These videos are about to help me pass my microeconomics class- thank you!

[@phoopwintkhaing]

I am a MBA student with no background in economic. Your videos helped me a lot. Thanks for sharing Jacob. You are awesome!

[@Labyrinth_thoughts]

Same preparing for my MBA microecon exam on Tuesday and he helps a lot

[@fredygerman_]

Thank you Mr.Clifford. Am doing my first AS Eco Paper tomorrow ... without your videos, I could be in panic mode right now

[@michellesilva8220]

omg you are so great in your explanations ! i started loving economics again!

[@SpazzBeatz]

Alot of talent! this is perfect!! looking forward to the next vid... WOW!

[@WhoBeSilly]

DUDE! I FRIGGIN' LOVE YOU! Microeconomics has oh, never been so much fun. No, I don't want a lock of your hair, but I would love to get your lesson on positive v. negative externalities.

[@oziomamish9947]

two years later, and this video is still helpful. Thanks

[@paqman9101]

Go third party. Buy from a supplier, barber shop, package it (brand it) as Mr. Cliford's Loc's., then sell it

[@lauramariavanessa5123]

Thanks for the great video! I'm more of a visual-learner so the use of symbols does help me a lot :). Also the little photograps in the Consumer/Producers surplus graph are helpful.

[@alaaaqeeqi7084]

Such a great video! amazing techniques to help students understand and remember the concepts.

[@rainyjain2298]

i just love your lectures and way teaching .. thank you for these amzing videos

[@mobiledude5229]

I am a second language student. I listened two times and eventually I got it. thank you.

[@ric6383]

Thank you for your efforts Mr Clifford.

[@robintsang]

Hello Sir, thank you so much for your tutorials, they are amazing and REALLY help me a lot! I wonder if there is any special price for college students of your ultimate package at this moment?

[@Hydrateslol]

That was a phenomenal segue into the class Professor, I really enjoyed that! xD

[@parsasamandi569]

I learned it perfectly, thanks Jacob! Best wishes, really appreciate it

[@vaniachrst98]

i'm having a quiz in 5 mins, and your video saved me. Thank you!

[@orivalx]

Mr Clifford D: please can you do some videos on Neo-Classical Trade theory and H-O trade models? please no one is teaching it and all the resources on it are confusing and convoluted.

[@prudenciamuzeka3017]

Thanks Mr Clifford. Learning from Zambia.... You so helpful

[@sudipadhikari6216]

thank you for your best lectures...would you plz make videos related on expected utility and firm production under uncertainty !!! thank you so much!!!

[@ayokolawole1139]

Great video, thanks Mr. Clifford

[@aman-se8ie]

This guy is very underrated... keep it up bro!

[@_MFatinIstiaque]

Can't believe he actually cut his hair for the sake of this topic . Great teacher for obvious reasons.

[@nsohmaxwell4553]

Wow, thank you Sir, you make Econs very easy

[@rukayatibrahim9813]

Thank you for the videos Mr. Clifford! As a lawyer who's just learning about economics, your videos have made it super easy for me to comprehend and understand economic concepts. But I have a question please. I understand that the scenario you painted are hypothetical. However how do they occur in real life? How exactly do firm do an analysis of how much individuals will be willing to pay for a product?

[@isaacong]

That's basically what data scientists do. They analyze data and use it to make a conclusion of how much someone is willing to pay for a good. Some factors used to determine the price of a good include the price elasticity of demand for the good and the price of substitute and complement goods. Determining this in real life actually isn't easy as there are many factors to consider, such as time of day, weather, current events, etc. There are entire companies just dedicated to providing price recommendations to businesses, such as Clearent.

[@VSLeonYT]

Sir, you know what? I've been struggling with this graph for a long time cuz I don't exactly know how to understand the graph 😊 Thanks A Lot!!

[@nwaiwumunachimso9951]

Just in time for my exam on Tuesday 😃😃😃😃😃😃 thanks Clifford

[@sarah98675]

hye sir. i hope u will constantly put subtitles there. because some deaf people like my friend can't understand what u said. thank you

[@InhaleCrazy]

Just use the youtube subtitles, is the cc in a square up on the right side of the v Of the creen

[@sinecurve9999]

10:04 If the base of that triangle is 3, and the price per unit falls by $20 per unit, I find the height of the triangle to be $60/unit which gives a consumer surplus of $90. Of course, who would buy 0 locks of hair for $120? That's just charity. Using a triangle to compute consumer surplus assumes that I can buy any fractional amount of a good. Would you be happy with half of a car for example? It's maybe better to think of the consumer surplus as the money saved per unit for quantities less than the equilibrium quantity. $40 (for 1 unit) + $20 ( for 2 units = $60 in consumer surplus.

[@kolaiahacquah8680]

Love it I always prefer to watch your videos to others

[@benuriwickramarathne5443]

Thank youuuMr Clifford! I would like a lock of your hair too xD Honestly ,u are awesomeeee

[@adyasharma1776]

I don't know, but you should give hime the hair. Also, you are the reason I am passing Economics because of you! :)

[@bidmurray2782]

i love your content so much. thanks for the dedication. may i also have a lock of hair please?

[@lucasm4299]

I would like to learn more about ethics in economics because as you pointed out markets can lead to ethical dilemmas. We should evaluate the morality system that an economic system induces and see if it’s compatible with ours.

[@user-lj5wr4iy6e]

🤓

[@mccuskermum]

This is soooo helpful!! Thank you!

[@arthur4008]

@4:01 How is the opportunity cost of producing the forth unit $80 ? It should only be $20 since the initial 60$ is the cost of producing the first 3 units?

[@marym9246]

In Mr. Clifford we trust 🙏🏽

[@seidanwar703]

Keep up it! !!if u are interested please give acourse about how to write abusines plan and also give us how to do aresearch in economix with example

[@aryanharde6995]

This video should have more views!!!

[@willgraham4678]

Mr. Clifford is my hero

[@timothydurant1077]

Hey Mr Clifford you are internet sensation. I use your videos in my class regularly. I love that they are short, impactful and engaging. I am really interested in resources needed to produce such videos. Can you help?

[@jamilhasan786]

Mr clifford just one thing you said in this video that if the last person gets the unit for $40 then market will be inefficient because it is less than the opportunity cost of producing the fourth unit ...what is the relation...didn't get it

[@HighAirBallerRandomVids]

Someone please explain the second problem at the end. It wasn't taught in the video!

[@nickgundrum.theatre]

Sweet Vid!!

[@xiya797]

Thank you for saving me the day before my ap test😭

[@AceHardy]

Keep it up 🔥🎶

[@KellyisaLlama]

king of markets !

[@okorieameachi4529]

Sir, i must agree ur useful. The Mike from Africa Cameroon

[@dmk9811]

I really Love your videos! I have to ask.. Why is the milk sitting on the bookshelf?!!🤔

[@nnekachukwuka370]

Please make a video on elasticity using midpoint formula 😢😢😢🙏🙏🙏🙏🙏🙏🙏🙏🙏🙏🙏🙏🙏🙏🙏

[@diyorbekkeldiyorov9994]

Hi guys I really did not understand the 3rd question. can anybody help me to get the question?

[@reginagalette6529]

I LOVED THE VIDEO but can someone explain why 2 is b please

[@rawadjabbour6485]

Okay Sir, can you please explain for us number 2

[@hiraldhuwaria7565]

you make economics interesting!

[@umarrasmi5016]

This mans a legend

[@moisekazembe7894]

Mr clinford you are more intelligent than my book.

[@mulungiesther9180]

thanks a lot for these lessons, they have improved a lot on my Economics. Really fun and they just keep me going video after video. I have learnt a lot. Keep this up and am going to get an A😁😁😁😁😁

[@Lisa___9c]

"That I cannot tell," said the Wizard; "but we cannot now be far below the earth's surface, and that entrance may lead to another stairway that will bring us on top of our world again, where we belong.

[@user-ks6hv1fm1k]

Great content

[@Richard___6090]

An intimate discussion with Binance's CEO about future developments

[@mccabe8818]

You should 100% give him a lock of your hair, just knowing that the hair came from the great Jacob Clifford automatically drives the price up

[@clairerozier4449]

Thank you for this 😁

[@xforce3648]

I don't understand question 2 of the quiz. Why is it B? Can anyone explain?

[@desakputri7552]

I don't understand how the second answer is 27? Can someone please explain?

[@nalugogladys5544]

But question 2 I want the procedure coz am using the formula but I get 18??

[@lial6443]

what is the formula for total consumer surplus?

[@mobiledude5229]

can you explain question 2? thank you.

[@dummy12367]

Really helpful

[@mrssorts667]

I just wanted to say, I love your videos and you might be the reason I actually pass economics! LOL Thanks for making these!!

[@venatortheanimefan4526]

Yes

[@user-hb1zi7sq2q]

can someone help me how we do the calculation? i didn't get it

[@shermiimasha3382]

i owe you sirrrr

[@neilnarayan6867]

Hi. Mr. Clifford, can you please explain how you got B as the answer for question 2 again? I got A. I followed the formula 1/2BH. That is. I multiplied the increase of price (which was 3 units) to the decrease in supply (6 units) and divided it by 2.

[@tasha9162]

You have to calculate the initial CS and the final CS and subtract the final by the initial. So, Initial CS = 12 × 6 ÷ 2 = 36 Final CS = 6 × 3 ÷ 2 = 9 Total CS = 9 - 36 = -27

[@fionawang193]

@@tasha9162 I am confused. There is no equilibrium price, so how can I get the initial consumer surplus and final consumer surplus? If you can help, I am appreciated it.

[@tasha9162]

@@fionawang193 Hi, There is no equilibrium because there is no supply curve so you can ignore that bit. The important thing to remember is that consumer surplus is how much people actually pay compared to how much they would like to pay. This can be calculated by measuring the triangle in which the height is the price they wanted to pay minus the price they actually paid, and the base is the quantity they got. So in the graph, you can see that because the demand curve starts at $9, this means that people are willing to buy it at that price point, but fortunately they can get it at only $3 for 12 quantities. This is their customer surplus. So the first (initial) customer surplus is the triangle with the height of 9 - 3 = 6, and the base of 12. On the other hand, because now they have to pay $6, people are only willing to buy 6 amounts. So the second (final) customer surplus is the triangle with the height of 9 - 6 = 3, and the base of 6. I hope this helps, please let me know if you have any questions.

[@fionawang193]

@@tasha9162 Thank you！ It really helps！

[@hobispreciouseusmile]

@@tasha9162 this helped me too Thank you so much!

[@shibbirahmed3661]

Can anyone help me with Question 3?

[@939449]

OMG I wish you were my Professor!

[@dora4245]

Someone help me with the second task at the ens of the video please

[@tinaxu4776]

just in time for midterm exam

[@shooqalnasr4025]

You’re the best

[@JN-jx7nx]

i may have a chance to pass this class after all

[@dancinglikecrazy5510]

Finally I understanndd

[@BeanisBags]

Im confused, why would you sell 1 lock of hair for $60 but only $60 for selling 2 locks of hair? Woudlnt you lose money on that?