3 SUPPLY AND DEMAND II: MARKETS AND WELFARE. Copyright © 2004 South-Western 7 Consumers, Producers, and the Efficiency of Markets.

Slides:



Advertisements
Similar presentations
Copyright © 2006 Thomson Learning 9 Application: International Trade.
Advertisements

Copyright © 2006 Thomson Learning 6 Supply, Demand, and Government Policies.
3 SUPPLY AND DEMAND II: MARKETS AND WELFARE. Copyright © 2006 Thomson Learning 7 Consumers, Producers, and the Efficiency of Markets.
3 SUPPLY AND DEMAND II: MARKETS AND WELFARE. Copyright © 2010 Cengage Learning 7 Consumers, Producers, and the Efficiency of Markets.
Copyright © 2004 South-Western Welfare Economics Welfare economics is the study of how the allocation of resources affects economic well-being. Buyers.
2 SUPPLY AND DEMAND I: HOW MARKETS WORK. Copyright © 2006 Thomson Learning 4 The Market Forces of Supply and Demand.
Copyright © 2004 South-Western 4 The Market Forces of Supply and Demand.
Copyright © 2004 South-Western 5 Elasticity and Its Application.
1 Consumers, Producers, and the Efficiency of Markets Chapter 7.
The Market Forces of Supply and Demand
Application: The Costs of Taxation Chapter 8 Figure 1 The Effects of a Tax Copyright © 2004 South-Western Size of tax Quantity 0 Price Price buyers pay.
Copyright © 2004 South-Western 7 Consumers, Producers, and the Efficiency of Markets.
ECON 202, Maclachlan, Spring Consumers, Producers, and the Efficiency of Markets Chapter 7.
3 SUPPLY AND DEMAND II: MARKETS AND WELFARE. Copyright © 2004 South-Western 7 Consumers, Producers, and the Efficiency of Markets.
Copyright © 2004 South-Western 6 Supply, Demand, and Government Policies.
Copyright © 2011 Cengage Learning 4 The Market Forces of Supply and Demand.
Copyright©2004 South-Western 30 Money Growth and Inflation Money Growth and Inflation.
Consumers, Producers, and the Efficiency of Markets Outline:  Positive economics: Allocation of scarce resources using forces of demand and supply  Normative.
Copyright © 2004 South-Western 7 Consumers, Producers, and the Efficiency of Markets.
© 2007 Thomson South-Western. Consumers, Producers and the Efficiency of Markets Revisiting the Market Equilibrium –Do the equilibrium price and quantity.
Harcourt, Inc. items and derived items copyright © 2001 by Harcourt, Inc. Welfare Economics u Buyers and sellers gain from the market. u The total welfare.
Consumer and Producer Surplus: Effects of Taxation
Chapter Five: Welfare Analysis. Consumer Surplus.
ECON111 Tutorial 3, Week 4.
TAXES! Why do I tax all the time?. How Taxes Affect Market Outcomes Market not efficient – Total surplus not maximized When a good is taxed, the quantity.
1 Further Topics in Supply and Demand Chapters 5 & 7.
Efficiency Consumer, Producer and Markets. Efficiency Defined Overall: Greatest human satisfaction from scarce resources. Allocative Efficiency – resources.
Chapter 7 notes.
Copyright © 2011 Cengage Learning 9 Application: International Trade.
3 SUPPLY AND DEMAND II: MARKETS AND WELFARE. Copyright © 2004 South-Western 7 Consumers, Producers, and the Efficiency of Markets.
CONSUMER SURPLUS, PRODUCER SURPLUS, AND THE EFFICIENCY OF MARKETS
Copyright © 2011 Cengage Learning 7 Consumers, Producers, and the Efficiency of Markets.
Consumers, Producers, and the Efficiency of Markets Chapter 7 Copyright © 2001 by Harcourt, Inc. All rights reserved. Requests for permission to make copies.
4 THE ECONOMICS OF THE PUBLIC SECTOR. Copyright © 2006 Thomson Learning 10 Externalities.
3 SUPPLY AND DEMAND II: MARKETS AND WELFARE. Copyright © 2004 South-Western 7 Consumers, Producers, and the Efficiency of Markets.
Consumers, Producers, and the Efficiency of Markets Chapter 7 Copyright © 2001 by Harcourt, Inc. All rights reserved. Requests for permission to make copies.
Module Supply and Demand: Supply and Equilibrium
Demand for and Supply of Greebes PRICE $ per Greebe QUANTITY DEMANDED (millions of Greebes) QUANTITY SUPPLIED (millions of Greebes) $
Demand, Supply, and Prices Dr. T. D. Mitchell Bonneville High School Idaho Falls, Idaho.
Chapter Three: Supply and Demand. The Theory of Supply.
Copyright © 2011 Cengage Learning 6 Supply, Demand, and Government Policies.
Consumers, Producers, and the Efficiency of Markets Chapter 7.
Copyright © 2006 Thomson Learning 15 Monopoly. Figure 1 Economies of Scale as a Cause of Monopoly Copyright © 2004 South-Western Quantity of Output Average.
2 SUPPLY AND DEMAND I: HOW MARKETS WORK Copyright © 2004 South-Western A Market Economy Consumer: a person who buys and uses goods and services Producer:
Review of Demand. A Tip for PPT animation Use PowerPoint to Animate an Excel Chart
Harcourt, Inc. items and derived items copyright © 2001 by Harcourt, Inc. Revisiting the Market Equilibrium Do the equilibrium price and quantity maximize.
Copyright © 2004 South-Western Welfare Economics Welfare economics is the study of how the allocation of resources affects economic well-being. Buyers.
Copyright © 2004 South-Western/Thomson Learning Application: The Costs of Taxation Recall that welfare economicsRecall that welfare economics is the study.
Copyright © 2004 South-Western 7 Consumers, Producers, and the Efficiency of Markets.
Chapter 6 Combining Supply and Demand. Equilibrium- where the supply and demand curves cross. Equilibrium determines the price and the quantity to be.
Unit 2, Lesson 6 Supply and Demand and Market Equilibrium
Consumer and Producer Surplus Lesson Consumer Surplus and the Demand Curve Willingness to Pay – The demand curve is based on the individual choices.
Demand A Schedule Showing the Consumers are Willing and Able to Purchase At a Specified Set of Prices During A Specified Period of Time Amounts of a Good.
3 SUPPLY AND DEMAND II: MARKETS AND WELFARE. Copyright © 2004 South-Western 7 Consumers, Producers, and the Efficiency of Markets.
Economic Surplus Welfare Economics and Public Goods.
Copyright © 2006 Thomson Learning 8 Application: The Costs of Taxation.
Copyright © 2004 South-Western Welfare Economics Welfare economics is the study of how the allocation of resources affects economic well-being. Buyers.
Copyright © 2010 Cengage Learning 6 Supply, Demand, and Government Policies.
Consumers, Producers, and the Efficiency of Markets
Consumer Surplus and Producer Surplus
Chapter Six: Welfare Analysis.
Welfare Economics Part II
EQUATION 2.1 Demand Function.
Market Efficiency Economics 101.
Market Efficiency Economics 101.
Equilibrium in the Market
Market Equilibrium – Consumer and Producer Surplus Graphically, we can identify the areas representing consumer and producer surplus, which.
SUPPLY AND DEMAND I: HOW MARKETS WORK
Market Efficiency Economics 101.
Presentation transcript:

3 SUPPLY AND DEMAND II: MARKETS AND WELFARE

Copyright © 2004 South-Western 7 Consumers, Producers, and the Efficiency of Markets

Table 1 Four Possible Buyers’ Willingness to Pay Copyright©2004 South-Western

Figure 1 The Demand Schedule and the Demand Curve Copyright©2004 South-Western

Figure 1 the Demand Schedule and the Demand Curve

Copyright©2004 South-Western Figure 2a Measuring Consumer Surplus with the Demand Curve

Copyright©2004 South-Western Figure 2b Measuring Consumer Surplus with the Demand Curve

Copyright©2004 South-Western Figure 3a How the Price Affects Consumer Surplus

Copyright©2004 South-Western Figure 3b How the Price Affects Consumer Surplus

Table 2 The Costs of Four Possible Sellers Copyright©2004 South-Western

Figure 4 The Supply Schedule and the Supply Curve

Copyright©2004 South-Western Figure 4 The Supply Schedule and the Supply Curve

Copyright©2004 South-Western Figure 5a Measuring Producer Surplus with the Supply Curve

Copyright©2004 South-Western Figure 5b Measuring Producer Surplus with the Supply Curve

Copyright©2004 South-Western Figure 6a How the Price Affects Producer Surplus

Copyright©2004 South-Western Figure 6b How the Price Affects Producer Surplus

Copyright©2004 South-Western Figure 7 Consumer and Producer Surplus in the Market Equilibrium

Copyright©2004 South-Western Figure 8 The Efficiency of the Equilibrium Quantity