Chapter 7

I would definitely give this chapter a 1 for difficulty. While there was a tiny bit of math involved its very simple to look at a graph and see what the producer and consumer surplus is. From a theoretical standpoint as well it also made sense to me. This chapter built on what Mr. Waller was saying about how only the transactions to the left of equilibrium work out. Before I was wondering if people who were willing to buy at higher prices or sell at lower prices actually ended up completing transactions with those values but I now know that that is not the case. All transactions in a perfectly competitive market take place at the equilibrium price. Anyone who was willing to buy for more or sell for less simply ends up benefiting from the equilibrium price. This chapter also showed me some of the potential trade-offs between equity and equality.