经济学原理Chap06曼昆.ppt

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1、,Supply,Demand and Government Policies,Chapter 6,Copyright 2001 by Harcourt,Inc.All rights reserved.Requests for permission to make copies of any part of thework should be mailed to:Permissions Department,Harcourt College Publishers,6277 Sea Harbor Drive,Orlando,Florida 32887-6777.,Supply,Demand,and

2、 Government Policies,In a free,unregulated market system,market forces establish equilibrium prices and exchange quantities.While equilibrium conditions may be efficient,it may be true that not everyone is satisfied.One of the roles of economists is to use their theories to assist in the development

3、 of policies.,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.,Price Ceilings&Price Floors,Price Ceiling A legally established maximum price at which a good can be sold.Price FloorA l

4、egally established minimum price at which a good can be sold.,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

5、.,A Price Ceiling That Is Not Binding.,$4,3,Quantity ofIce-CreamCones,0,Price ofIce-CreamCone,Demand,Supply,100,Equilibriumquantity,Harcourt,Inc.items and derived items copyright 2001 by Harcourt,Inc.,A Price Ceiling That Is Binding.,$3,Quantity ofIce-CreamCones,0,Price ofIce-CreamCone,2,Demand,Supp

6、ly,Harcourt,Inc.items and derived items copyright 2001 by Harcourt,Inc.,Effects of Price Ceilings,A binding price ceiling creates.shortages because QD QS.Example:Gasoline shortage of the 1970s nonprice rationingExamples:Long lines,Discrimination by sellers,Lines at the Gas Pump,In 1973 OPEC raised t

7、he price of crude oil in world markets.Because crude oil is the major input used to make gasoline,the higher oil prices reduced the supply of gasoline.,What was responsible for the long gas lines?,Economists blame government regulations that limited the price oil companies could charge for gasoline.

8、,The Price Ceiling on Gasoline Is Not Binding.,$4,P1,Quantity ofGasoline,0,Price ofGasoline,Q1,Demand,Supply,The Price Ceiling on Gasoline Is Binding.,P1,Quantity ofGasoline,0,Price ofGasoline,Q1,Demand,S1,Priceceiling,Rent Control,Rent controls are ceilings placed on the rents that landlords may ch

9、arge 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.,Quantity ofApartments,0,Rental Price ofApartment,Demand,Supply,Supply and dema

10、nd for apartments are relatively inelastic,Rent Control in the Long Run.,Quantity ofApartments,0,Rental Price ofApartment,Demand,Supply,Because the supply and demand for apartments are more elastic.,rent control causes a large shortage,Price Floors,When the government imposes a price floor,two outco

11、mes 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.,$3,Quantity ofIce-CreamCones,0,Price ofIce-CreamCone,100,Equilibriumquantity,Demand,Supply,2,A Pri

12、ce Floor That Is Binding.,$3,Quantity ofIce-CreamCones,0,Price ofIce-CreamCone,Demand,Supply,$4,Harcourt,Inc.items and derived items copyright 2001 by Harcourt,Inc.,Effects of a Price Floor,A price floor prevents supply and demand from moving toward the equilibrium price and quantity.When the market

13、 price hits the floor,it can fall no further,and the market price equals the floor price.,Effects of a Price Floor,A binding price floor causes.a surplus because QS QD.nonprice rationing is an alternative mechanism for rationing the good,using discrimination criteria.Examples:The minimum wage,Agricu

14、ltural price supports,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,Quantity ofLabor,0,Wage,Labor demand,Labor supply,A Free Labor Market,The Minimum Wage,Quantity o

15、fLabor,0,Wage,Labor demand,Labor supply,A Labor Market with a Minimum Wage,Taxes,Governments levy taxes to raise revenue for public projects.,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

16、burden.,Taxes,Tax incidence is the study of who bears the burden of a tax.Taxes result in a change in market equilibrium.Buyers pay more and sellers receive less,regardless of whom the tax is levied on.,Impact of a 50 Tax Levied on Buyers.,3.00,Quantity ofIce-Cream Cones,0,Price ofIce-CreamCone,100,

17、D1,Supply,S1,Copyright 2001 by Harcourt,Inc.All rights reserved,3.00,Quantity ofIce-Cream Cones,0,Price ofIce-CreamCone,100,90,D1,D2,Supply,S1,Impact of a 50 Tax Levied on Buyers.,Copyright 2001 by Harcourt,Inc.All rights reserved,What was the impact of tax?,Taxes discourage market activity.When a g

18、ood is taxed,the quantity sold is smaller.Buyers and sellers share the tax burden.,3.00,0,100,S1,Demand,D1,Impact of a 50 Tax on Sellers.,Copyright 2001 by Harcourt,Inc.All rights reserved,A Payroll Tax,Quantity ofLabor,0,Wage,Labor demand,Labor supply,The Incidence of Tax,In what proportions is the

19、 burden of the tax divided?How do the effects of taxes on sellers compare to those levied on buyers?,The answers to these questions depend on the elasticity of demand and the elasticity of supply.,Elastic Supply,Inelastic Demand.,Quantity,0,Price,Demand,Supply,Inelastic Supply,Elastic Demand.,Quanti

20、ty,0,Price,Demand,Supply,So,how is the burden of the tax divided?,The burden of a tax falls more heavily on the side of the market that is less elastic.,Summary,Price controls include price ceilings and price floors.A price ceiling is a legal maximum on the price of a good or service.An example is r

21、ent control.A price floor is a legal minimum on the price of a good or a service.An example is the minimum wage.,Summary,Taxes are used to raise revenue for public purposes.When the government levies a tax on a good,the equilibrium quantity of the good falls.A tax on a good places a wedge between th

22、e price paid by buyers and the price received by sellers.,Summary,The incidence of a tax refers to who bears the burden of a tax.The incidence of a tax does not depend on whether the tax is levied on buyers or sellers.The incidence of the tax depends on the price elasticities of supply and demand.,A

23、 Price Ceiling That Is Not Binding.,Harcourt,Inc.items and derived items copyright 2001 by Harcourt,Inc.,A Price Ceiling That Is Binding.,Harcourt,Inc.items and derived items copyright 2001 by Harcourt,Inc.,The Price Ceiling on Gasoline Is Not Binding.,The Price Ceiling on Gasoline Is Binding.,Rent

24、Control in the Short Run.,Supply and demand for apartments are relatively inelastic,Rent Control in the Long Run.,A Price Floor That Is Not Binding.,A Price Floor That Is Binding.,Harcourt,Inc.items and derived items copyright 2001 by Harcourt,Inc.,The Minimum Wage,The Minimum Wage,Impact of a 50 Tax Levied on Buyers.,Impact of a 50 Tax Levied on Buyers.,Impact of a 50 Tax on Sellers.,A Payroll Tax,Elastic Supply,Inelastic Demand.,Inelastic Supply,Elastic Demand.,