Voluntary exchange works because people value things differently. Those differences create opportunities for everyone to be better off.
Great summary! It’s a good way to teach consumer surplus concepts.
Exactly! I'm glad you saw that too. Too often it's just taught as "the area of the triangle above P* and the intercept" which makes it feel too mechanical, in my opinion.
Great summary! It’s a good way to teach consumer surplus concepts.
Exactly! I'm glad you saw that too. Too often it's just taught as "the area of the triangle above P* and the intercept" which makes it feel too mechanical, in my opinion.