I could really use some help in me Microeconomis class

@TurtlePink When I was learning it I had to dumb it down for myself first. 😅

Yeah, there's a little more. So, when they're talking about "social surplus" they're discussing about the market equilibrium. There is (theoretically) a point where both the consumer and producer agree on a price. At that point the economy is functioning at maximum efficiency. It's where both of the curves cross/meet.

So, what happens when I set a price ceiling below market equilibrium (which is the first graph)? Well that means that the business is forced to make a price lower than they would at the equilibrium. For example (with the bread) if the price ceiling was 5 dollars but the equilibrium price was 10 dollars then the company is losing out on 5 dollars for every transaction they make.

Generally, whenever the price ceiling is below the equilibrium, the producer loses money, the consumer gains money and there is a net decrease in overall social surplus (since the economy is not functioning at its maximum efficiency).

Using the graph (and a little math) you can calculate how much money the suppliers lose, the consumers gain and the total affect on net social surplus. All those boxes (with the letters) are representations that you can use to help you in your calculations. That's too complicated/annoying to explain on SW but there are tons of sites like Khan academy on youtube that explain how to do that.

On a test you'll more than likely be asked to do that.

@Chaoshead Dude, you're the best! I had to register that information into my brain a couple times before it made sense. But Im finally getting it. I appericate your help, :* Now Im at a better start with all of this.

@TurtlePink No problem, it's cold as balls outside so I'm stuck in my dorm room doing nothing anyway. 😅

If you ever have any other stuff on this that might need some clarifying feel free to pass it by me.

@SW-User I can't focus

@TurtlePink can’t help with focusing maybe you can smoke before class or something lol