Answer to Question #239464 in Microeconomics for WHY NOT

Question

1. Find The Difference between the following. USE RELEVANT DIAGRAMS WHERE
APPLICABLE
b. Consumer and producer surplus
c. Constraint optimization and unconstraint optimization
d. Difference equation and differential equation
e. Necessary condition and sufficient condition.



6. Given the demand function: Qdt = 60 – 8Pt and the supply function Qst = -10 + 6Pt.

Answer 1

b) Consumer surplus tends to be difference between the amount a customer is ready to pay with the amount they pay in the end. Producer surplus tends to be difference between product's actual price with the lowest amount producer is ready to accept for the product.

c) Unconstrained implies that respective choice variable may go with any amount. Constrained implies that respective choice variable may only go with particular values in larger range.

d) Difference equations tend to be the ones which equalities are expressed based on functions of independent variable as well as function's finite differences.

Differential equations tend to have various properties through which they are categorize into partial a d ordinary, inhomogeneous and homogeneous, and non-linear and linear.

e) Necessary condition tends to be an aspect needed for an activity to take place. Sufficient condition tends to be a factor or factors which will produce the activity.