Market Imperfections & Policy

April 1, 2013

Extra Credit for the Brave

• The first person to volunteer to explain Econ 1 in less than one minute to the rest of the class gets +10% extra credit.

April Fool’s: No extra credit

• I just made somebody look very silly.• Thanks anyway – Econ 2 begins with Econ 1

Syllabus & Website

• Tour of syllabus• econ2ucsd.worpress.com– Everything will be posted there, along with my

observations before & after class

Producer surplus

• Review• What is the minimal amount you would be willing to

accept for an hour of labor? Write it down, along with a sentence describing your reasoning.

• Form a group of five and compare your wages. How do they differ? Why do they differ?

• Draw a Supply of Labor graph for your group.• What is the total producer surplus of your group if

the going wage is equal to your group’s highest wage?