供给、需求与政府政策英.ppt

Chapter 5Supply,Demand and Government Policies,1.Supply,Demand,and Government Policies,2.Price Controls.,Are usually enacted when policymakers believe the market price is unfair to buyers or sellers.Result in government-created price ceilings and floors.,2.1 Price Ceilings&Price Floors,Price Ceilings,Two outcomes are possible when the government imposes a price ceiling:The price ceiling is not binding if set above the equilibrium price.The price ceiling is binding if set below the equilibrium price,leading to a shortage.,A Price Ceiling That Is Not binding.,A Price Ceiling That Is Binding.,Effects of Price Ceilings,The Price Ceiling on Gasoline Is Not Binding.,The Price Ceiling on Gasoline Is Binding.,Rent Control,Rent controls are ceilings placed on the rents that landlords may charge their tenants.The goal of rent control policy is to help the poor by making housing more affordable.One economist called rent control“the best way to destroy a city,other than bombing.”,Rent Control in the Short Run.,Rent Control in the Long Run.,Price Floors,When the government imposes a price floor,two outcomes are possible.The price floor is not binding if set below the equilibrium price.The price floor is binding if set above the equilibrium price,leading to a surplus.,A Price Floor That Is Not Binding.,A Price Floor That Is Binding.,Effects of a Price Floor,Effects of a Price Floor,A binding price floor causes.a surplus because QSQD.nonprice rationing is an alternative mechanism for rationing the good,using discrimination criteria.Examples:The minimum wage,Agricultural price supports,3 The Minimum Wage,An important example of a price floor is the minimum wage.Minimum wage laws dictate the lowest price possible for labor that any employer may pay.,The Minimum Wage,The Minimum Wage,Taxes,What are some potential impacts of taxes?,Taxes discourage market activity.When a good is taxed,the quantity sold is smaller.Buyers and sellers share the tax burden.,Taxes,Impact of a 50Tax Levied on Buyers.,Impact of a 50Tax Levied on Buyers.,What was the impact of tax?,Taxes discourage market activity.When a good is taxed,the quantity sold is smaller.Buyers and sellers share the tax burden.,Impact of a 50Tax on Sellers.,A Payroll Tax,The Incidence of Tax,In what proportions is the burden of the tax divided?How do the effects of taxes on sellers compare to those levied on buyers?,Elastic Supply,Inelastic Demand.,Inelastic Supply,Elastic Demand.,