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P1 pe price - PowerPoint PPT Presentation

Lesson 3

Lesson 3. The Meaning of Price, Value, and Economic Efficiency. Consumer and Producer Surplus. Diamond Water Paradox. Efficiency of Competitive Market equilibrium Efficiency Implications of Price Controls and Taxes. Area under demand = total value of that output. 1. P 1. 2. 3. P e. 5.

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P1 pe price - PowerPoint PPT Presentation

Lesson 3