1. Copyright ©2011 by Pearson Education, Inc. Upper Saddle River, New Jersey 07458 All rights reserved. Chapter Cost-Benefit Analysis Concepts and Practice Cost-Benefit Analysis: Concepts and Practice, Fourth Edition Boardman Greenberg Vining Weimer FOURTH EDITION Microeconomic Foundations of Cost- Benefit Analysis Three

2. Copyright ©2011 by Pearson Education, Inc. Upper Saddle River, New Jersey 07458 All rights reserved. Cost-Benefit Analysis: Concepts and Practice, Fourth Edition Boardman Greenberg Vining Weimer Figure 3-1 Consumers’ Total Benefits and Consumer Surplus

3. Copyright ©2011 by Pearson Education, Inc. Upper Saddle River, New Jersey 07458 All rights reserved. Cost-Benefit Analysis: Concepts and Practice, Fourth Edition Boardman Greenberg Vining Weimer Figure 3-2 Change in Consumer Surplus Due to a Price (a) Decrease (b) Increase

4. Copyright ©2011 by Pearson Education, Inc. Upper Saddle River, New Jersey 07458 All rights reserved. Cost-Benefit Analysis: Concepts and Practice, Fourth Edition Boardman Greenberg Vining Weimer Figure 3-3 Individual Firm’s Supply Curve

5. Copyright ©2011 by Pearson Education, Inc. Upper Saddle River, New Jersey 07458 All rights reserved. Cost-Benefit Analysis: Concepts and Practice, Fourth Edition Boardman Greenberg Vining Weimer Figure 3-4 Market Supply Curve

6. Copyright ©2011 by Pearson Education, Inc. Upper Saddle River, New Jersey 07458 All rights reserved. Cost-Benefit Analysis: Concepts and Practice, Fourth Edition Boardman Greenberg Vining Weimer Figure 3-5 Social Surplus

7. Copyright ©2011 by Pearson Education, Inc. Upper Saddle River, New Jersey 07458 All rights reserved. Cost-Benefit Analysis: Concepts and Practice, Fourth Edition Boardman Greenberg Vining Weimer Figure 3-6 Target Pricing Example

8. Copyright ©2011 by Pearson Education, Inc. Upper Saddle River, New Jersey 07458 All rights reserved. Cost-Benefit Analysis: Concepts and Practice, Fourth Edition Boardman Greenberg Vining Weimer

9. Copyright ©2011 by Pearson Education, Inc. Upper Saddle River, New Jersey 07458 All rights reserved. Cost-Benefit Analysis: Concepts and Practice, Fourth Edition Boardman Greenberg Vining Weimer

10. Copyright ©2011 by Pearson Education, Inc. Upper Saddle River, New Jersey 07458 All rights reserved. Cost-Benefit Analysis: Concepts and Practice, Fourth Edition Boardman Greenberg Vining Weimer

11. Copyright ©2011 by Pearson Education, Inc. Upper Saddle River, New Jersey 07458 All rights reserved. Cost-Benefit Analysis: Concepts and Practice, Fourth Edition Boardman Greenberg Vining Weimer EXHIBIT 3-2 (continued)

12. Copyright ©2011 by Pearson Education, Inc. Upper Saddle River, New Jersey 07458 All rights reserved. Cost-Benefit Analysis: Concepts and Practice, Fourth Edition Boardman Greenberg Vining Weimer EXHIBIT 3-2 (continued)

13. Copyright ©2011 by Pearson Education, Inc. Upper Saddle River, New Jersey 07458 All rights reserved. Cost-Benefit Analysis: Concepts and Practice, Fourth Edition Boardman Greenberg Vining Weimer

14. Copyright ©2011 by Pearson Education, Inc. Upper Saddle River, New Jersey 07458 All rights reserved. Cost-Benefit Analysis: Concepts and Practice, Fourth Edition Boardman Greenberg Vining Weimer Figure 3A-1 Analysis of a Price Change (a) Indifference Curve (b) Demand Curve