Uploaded April 2024 | Updated September 2026, 1 week ago

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Join Professor Matt Hill as he walks you through the classroom slides of Day 7: " Efficiency of Markets" from MRU's free "Supply, Demand, and Equilibrium" unit plan. Get the unit plan here: mru.io/7ef

NOTE: slide numbers may have changed since this video was recorded.

Learning Objectives
- Define total surplus for an individual transaction and for the market as a whole.
- Calculate total surplus for a given transaction.
- Recognize why total surplus must be positive for a voluntary exchange.
- Explain the concept of market equilibrium and its role in maximizing total surplus.
- Illustrate total surplus on a graph.
- Evaluate alternative equilibrium and the surplus associated with them graphically.