Unit 2 Utility & Elasticity (Micro)

Unit 2 Overview: Top 10 things you need to know about diminishing marginal utility, consumer behavior, price elasticity of demand, and price elasticity of supply. This is geared toward college-level principles of micro courses and students enrolled in AP Economics. Take notes and pause when necessary.

Top 10 concepts in this video:

#1. Total Utility vs. Marginal Utility

#2. Utility-Maximization Formula

#3. Consumer & Producer Surplus

#4. Determinants of Price Elasticity of Demand

#5. Slope vs. Elasticity

#6. Extreme Elasticity

#7. Total Revenue & Elasticity

#8. Income Elasticity of Demand

#9. Cross-Price Elasticity of Demand

#10. Price Elasticity of Supply

NB7. Consumer Surplus (Micro)

Learning objectives:

1. Students will be able to define consumer surplus.

2. Students will be able to identify the area of consumer surplus in a market.

3. Students will be able to calculate the area of consumer surplus in a market.

NB7. Producer Surplus (Micro)

Learning objectives:

1. Students will be able to define producer surplus.

2. Students will be able to identify the area of producer surplus in a market.

3. Students will be able to calculate the area of producer surplus in a market.

NB7. Elasticity Types (Micro)

NB7. Budget Line / Budget Constraint (Micro)