## Economic Welfare Effects of a Government Subsidy

A graphical look at how a government subsidy affects equilibrium along with its effects on consumer surplus, producer surplus, and dead-weight loss....

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A graphical look at how a government subsidy affects equilibrium along with its effects on consumer surplus, producer surplus, and dead-weight loss....

From 1sportingclays

How to mathematically find the socially optimal/efficient output in the presence of a negative externality, and how to find the corrective or Pigouvian tax....

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I use the consumer price index (CPI) to examine 1) the inflation-adjusted price change in movie tickets between 1977 and 2014, and 2) the inflation-adjusted price change in college tuition between 2000 and 2014....

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This video analyzes how to solve a monopoly problem when there is a per-unit tax placed on the firm. The effects on consumer surplus, producer surplus, and deadweight loss are explored....

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This video examines how the tax burden is split between buyers and sellers using elasticities of supply and demand. The derivation of the tax incidence formula is derived, too....

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This video will show how to solve for the parameters "a" and "b" in a linear demand curve (Q = a - bP) using data on the equilibrium price and quantity, and the price elasticity of demand....

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The economics of the cobweb labor market model are presented with a numerical example. The two critical assumptions of cobweb models are 1) it takes time to train and enter certain occupations (e.g., engineering), giving rise to perfectly inelastic short-...

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This video shows how to find the wage in a dirty job and the compensating wage differential between a dirty job and a clean job. I use the utility function given by U = W^1/2 - X (all workers are assumed to have this utility function), where W is the wage...

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I use calculus to find the mixed strategy Nash equilibrium in a game that has no pure strategy Nash equilibrium....

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Material from Chapter 13...

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This video, which uses calculus, shows how to maximize profit when using a block-pricing strategy....

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This video shows how to derive compensated (Hicksian) and uncompensated (Marshallian) demand functions. These concepts are then used to illustrate the income and substitution effects of a price change....

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This video shows how to maximize utility subject to a budget constraint....

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This video maximizes a consumer's utility function subject to a budget constraint....

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In this video, I show how to solve for a firm's long-run expansion path...

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Three examples are given showing how to mathematically solve for the equilibrium price and quantity....

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This video derives the consumer's expenditure function, a topic discussed in intermediate/advanced microeconomics. The expenditure function provides the necessary expenditure to achieve a certain level of utility at a given set of prices....

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This video derives a consumer's indirect utility function....

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How to derive demand functions from a perfect complements (fixed proportions) utility function....

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This video demonstrates how to maximize a consumer utility function of the form U = min.(ax, by)....

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This video shows how to mathematically solve for producer surplus when a firm engages in perfect price discrimination....

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I show how to solve for the steady state equilibrium when the labor the force growth rate is positive....

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I show how to solve for the steady state equilibrium in an economy characterized by: y = k^0.25, s = 0.20, d = 0.10....

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This video reviews (non-graphically) the essential ideas of the Solow growth model and provides a numerical example, solving for the steady state capital-labor ratio, steady state GDP per worker, steady state investment per worker, and steady state consum...

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This video shows how to solve for the equilibrium wage and employment level in a monopsony market....

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This video shows you how to derive an indifference curve from a consumer's utility function. I then solve for the slope of the indifference curve at a particular point and show how it relates to the marginal rate of substitution at that point....

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This video gives an example of maximizing utility with three goods--that is the consumer's utility is a function of three goods: U = f(x, y, z)...

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This video gives a couple of numerical examples of short-run cost functions. The graphs of the functions are derived as well....

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I review and define the seven short-run costs of production: total cost, variable cost, fixed cost, average cost, average variable cost, average fixed cost, and marginal cost....

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This video solves for the optimal number of production runs to minimize the costs of setting up production runs and costs of holding inventory. We will use calculus to minimize the following total costs equation: TC = [setup cost x n] + [annual inventory...

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This video examines 5 different utility functions, deriving their corresponding marginal utility functions and solving for the marginal rate of substitution....

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