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PARTIAL EQUILIBRIUM ONE GOOD. NO TRADE EQUILIBRIUM PRICE OF BREAD QUANTITY OF BREAD A D PBPB QBQB SdSd DdDd.

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Presentation on theme: "PARTIAL EQUILIBRIUM ONE GOOD. NO TRADE EQUILIBRIUM PRICE OF BREAD QUANTITY OF BREAD A D PBPB QBQB SdSd DdDd."— Presentation transcript:

1 PARTIAL EQUILIBRIUM ONE GOOD

2 NO TRADE EQUILIBRIUM PRICE OF BREAD QUANTITY OF BREAD A D PBPB QBQB SdSd DdDd

3 NO TRADE EQUILIBRIUM PRICE OF BREAD QUANTITY OF BREAD A D PBPB QBQB SdSd DdDd Producer Surplus

4 NO TRADE EQUILIBRIUM PRICE OF BREAD QUANTITY OF BREAD A D PBPB QBQB SdSd DdDd Consumer Surplus

5 CONSUMER SURPLUS MEASURES THE WELFARE GAIN THAT CONSUMERS OBTAIN FROM PURCHASING GOODS THAT ARE BELOW THEIR WORTH.

6 PRODUCER SURPLUS MEASURES THE WELFARE GAIN THAT PRODUCERS OBTAIN FROM SELLING GOODS AT PRICES THAT ARE ABOVE THEIR PRODUCTION COST.

7 GAINS FROM TRADE: EXPORTING COUNTRY PRICE OF BREAD QUANTITY OF BREAD A G E QBQB SdSd DdDd F

8 GAINS FROM TRADE: EXPORTING COUNTRY PRICE OF BREAD QUANTITY OF BREAD A G E SdSd DdDd F CBCB QBQB B CD EXPORT PRODUCER SURPLUS BE- FORE TRADE PWPW

9 GAINS FROM TRADE: EXPORTING COUNTRY PRICE OF BREAD QUANTITY OF BREAD A G E SdSd DdDd F CBCB QBQB B CD EXPORT PRODUCER SURPLUS AFTER TRADE PWPW

10 GAINS FROM TRADE: EXPORTING COUNTRY PRICE OF BREAD QUANTITY OF BREAD A G E SdSd DdDd F CBCB QBQB B CD EXPORT PWPW CONSUMER SURPLUS

11 GAINS FROM TRADE: EXPORTING COUNTRY PRICE OF BREAD QUANTITY OF BREAD A G E SdSd DdDd F CBCB QBQB B CD EXPORT PWPW CONSUMER SURPLUS AFTER TRADE

12 GAINS FROM TRADE: IMPORTING COUNTRY PRICE OF WINE QUANTITY OF WINE A G B QBQB SdSd DdDd C

13 GAINS FROM TRADE: IMPORTING COUNTRY PRICE OF WINE QUANTITY OF WINE A G B SdSd DdDd C PWPW FD IMPORT

14 GAINS FROM TRADE: IMPORTING COUNTRY PRICE OF WINE QUANTITY OF WINE A G B SdSd DdDd C PWPW FD IMPORT CONSUMER SURPLUS

15 GAINS FROM TRADE: IMPORTING COUNTRY PRICE OF WINE QUANTITY OF WINE A G B SdSd DdDd C PWPW FD IMPORT

16 GAINS FROM TRADE: IMPORTING COUNTRY PRICE OF WINE QUANTITY OF WINE A G B SdSd DdDd C PWPW FD IMPORT

17 EFFECTIVE SUPPLY AND DEMAND

18 EFFECTIVE SUPPLY AND DEMAND MEASURE THE IMPACT OF DOMESTIC AND WORLD MARKETS ON A COUNTRY

19 EFFECTIVE DEMAND FOR EXPORTING COUNTRY PRICE OF BREAD QUANTITY OF BREAD A G E QBQB SdSd DdDd F P D =P W DeDe

20 EFFECTIVE SUPPLY CURVE: IMPORTING COUNTRY PRICE OF WINE QUANTITY OF WINE A G SdSd DdDd Pd = Pw FD Se

21 EXCESS DEMAND CURVE AUTARKY NO EXCESS DEMAND PRICE OF BREAD QUANTITY OF BREAD A G E QBQB SdSd DdDd F

22 EXCESS DEMAND CURVE ALLOW TRADE TO OCCUR PRICE OF BREAD QUANTITY OF BREAD A G E QPQP SdSd DdDd F QCQC

23 EXCESS DEMAND CURVE ALLOW TRADE TO OCCUR PRICE QUANTITY A G E QPQP SdSd DdDd QCQC PRICE QUANTITY PWPW PWPW QTQT A B C ED

24 EXCESS SUPPLY CURVE AUTARKY NO EXCESS SUPPLY PRICE QUANTITY A G E QBQB SdSd DdDd F

25 EXCESS SUPPLY CURVE ALLOW TRADE TO OCCUR PRICE QUANTITY A G E QPQP SdSd DdDd QCQC PRICE QUANTITY PWPW PWPW QTQT A B C ES

26 EXCESS SUPPLY AND DEMAND CURVE PRICE QUANTITY A D QTQT ES SUM ED SUM C PWPW B


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