Principles of Microeconomics / Unit 2 MIC 0130 short lesson, about 20 seconds
Social Surplus and Efficiency
Captions available
The idea
Social surplus is consumer surplus plus producer surplus. It is largest at the equilibrium quantity, so a market that reaches it is efficient: every trade both sides wanted has happened.
In practice
At equilibrium, neither surplus can grow without the other shrinking.
Where people slip
Efficient means nothing is left on the table, not that the split is fair; video one forty returns to that.
Your place on the trail
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