From 197eb55e7a9eb6737ed21bc6e208ed3494e5ab29 Mon Sep 17 00:00:00 2001 From: Longye Tian Date: Fri, 2 Aug 2024 19:01:25 +1000 Subject: [PATCH] [intro_supply_demand] example admonition add two example admonitions --- lectures/intro_supply_demand.md | 8 ++++++++ 1 file changed, 8 insertions(+) diff --git a/lectures/intro_supply_demand.md b/lectures/intro_supply_demand.md index 8ace7a89..aea36eb5 100644 --- a/lectures/intro_supply_demand.md +++ b/lectures/intro_supply_demand.md @@ -68,6 +68,9 @@ Before we look at the model of supply and demand, it will be helpful to have som ### A discrete example +```{prf:example} +:label: isd_ex_cs + Regarding consumer surplus, suppose that we have a single good and 10 consumers. These 10 consumers have different preferences; in particular, the amount they would be willing to pay for one unit of the good differs. @@ -79,6 +82,7 @@ Suppose that the willingness to pay for each of the 10 consumers is as follows: | willing to pay | 98 | 72 | 41 | 38 | 29 | 21 | 17 | 12 | 11 | 10 | (We have ordered consumers by willingness to pay, in descending order.) +``` If $p$ is the price of the good and $w_i$ is the amount that consumer $i$ is willing to pay, then $i$ buys when $w_i \geq p$. @@ -253,6 +257,9 @@ Let $v_i$ be the price at which producer $i$ is willing to sell the good. When the price is $p$, producer surplus for producer $i$ is $\max\{p - v_i, 0\}$. +```{prf:example} +:label: isd_ex_dc + For example, a producer willing to sell at \$10 and selling at price \$20 makes a surplus of \$10. Total producer surplus is given by @@ -273,6 +280,7 @@ p = 2 q^2 $$ The shaded area is the total producer surplus in this continuous model. +``` ```{code-cell} ipython3 ---