Part 2 需求曲线与供给曲线2——ch04_经济效率、政府定价与税收.ppt

* In this graph, the demand curve, equilibrium price, and size of the tax are identical to those in the graph on the preceding slide. The only thing that’s different is the supply curve here is flatter; as a result, the same size tax as before causes a larger DWL. * The tax raises the price buyers pay and therefore reduces the quantity demanded. The equilibrium quantity falls below the surplus-maximizing quantity, but not by much when demand is price-inelastic. * In this graph, the supply curve, equilibrium price, and size of the tax are identical to those in the graph on the preceding slide. The only thing that’s different is the demand curve here is flatter; as a result, the same size tax as before causes a larger DWL. These examples (breakfast cereal vs. sunscreen) were chosen not because they are exciting real-world policy debates, but because they link back to the examples used in Chapter 5 to help students deduce the factors that determine elasticity. Suggestion: Display all three questions and give students a few moments to think about it. Then, proceed to the following slides… It might be worth mentioning the following to students: For each pair of goods, we are considering taxes of similar relative magnitude. E.g., it wouldn’t be fair to ask whether a $10 per bottle tax on sunscreen has a bigger DWL than a $0.01 tax on boxes of breakfast cereal. Suggestion: Display the first line, then invite students to volunteer their answers before displaying the explanation. * The next few slides are adapted from the section “Case Study: The Deadweight Loss Debate” in this chapter of the textbook. The title of this slide is actually a direct quote from this section. I think it makes a catchier title for these slides than “the deadweight loss debate.” Why the marginal tax rate is relevant: One of the 10 Principles from Chapter 1 is “rational people think at the margin.” This applies to workers, as well. When Susan considers increasing her hou