Shahid Monametsi
This chapter confused me numerous times. I know that this was meant to be on of the easier topics (especially after tax wedges and what not), however I feel as though I failed to grasp a lot of the concepts covered at the moments. I feel as though the book made calculating the consumer surplus far more complicated than it actually is, and I found myself getting lost in the transition. Nonetheless, I think that this chapter is very intriguing because it further explains the human reactions in the economy. I felt as though this chapter was more realistic than the earlier chapters in the sense that it takes into account human reaction and the tendency to want more for less (greediness).
One part of the chapter that came across completely clear to me was the social planner bit. While I thought price was the only thing guiding the market (as explained in the invisible hand ideal), having a character/ person in charge made everything easier to follow for some reason. The equations provided to find Total Surplus seemed logical, however I know that I could never derive them if ever needed.
I found the end of the chapter to be a brief summary of everything we've learned. While the term Market Failure is new, I believe that the cause and effects made perfect sense based off of what we've already learned (policy makers interferences and efficient proaction).
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