*Itmighthelptosay“participatinginthemarket”meansbuyingandselling.ItmightalsohelptosaythatCSmeasuresthenetbenefittobuyers:thevaluetheygetfromthegoodisthegrossbenefit,minuswhattheypayleavesthenetbenefit,orCS.Similarly,PSisthenetbenefittosellers.Ididnotput“netbenefit”onthisslidebecauseitisnotinthebook.Butifyouwish,youmayaddit.Aftershowingthisslideinclass,Ishowmystudentsashortscenefromthemovie“PrettyWoman”asanexampleoftheseconcepts.Inthisscene,JuliaRobertsistakingabubblebathinRichardGere’shotelroom(don’tworry—there’snonudity!).Gerecomesintothebathroomandtheynegotiateapriceforherto“beathisbeckandcall”foroneweek.Afterbargainingforafewseconds,theyagreeonapriceof$3000.Aminutelater,hesayshewouldhavepaid$4000(hiswillingnesstopay),andshesaysshewouldhaveaccepted$2000(her“cost”).Fromthis,wecandeducethatCS=$1000,PS=$1000,andtotalsurplus=$2000.Ifthistransactiondidnotoccur,thenthesecharacterswouldnothavereceivedthese“gainsfromtrade.”Disclaimer:Weofficiallyurgeyoutoconsultwithyourinstitution’slegaladvisortoverifythatshowingthisbriefclipinyourclassdoesnotviolateanycopyrightlaws.Weacceptnoresponsibilityinthismatter.Forexample,weabsolutelydonotrecommendthatyourent“PrettyWoman”onDVD,downloadafreeevaluationcopyofaprogramlikeAoADVDRipperfromthewebsite,andusethatsoftwaretocreateavideoclipoftheabove-describedsegmentofPrettyWomanfromtheDVD,avideoclipwhichcouldthenbemovedtothecomputerinyourclassroomtobeshowninyourclassroompresentationofthischapter.Weurgeyoutorespecttheintellectualpropertyofothers,andallcopyrightlaws.*Isthemarket’sallocationofresourcesdesirable?Thisquestionisimportant,becausetheanswertoithasimplications