消费者生产者市场效率7 chapter 0707.pptx

Consumers,Producers,and

theEfficiencyofMarkets7

ConsumerSurplusWelfareeconomicsHowtheallocationofresourcesaffectseconomicwell-beingWillingnesstopayMaximumamountthatabuyerwillpayforagoodConsumersurplusAmountabuyeriswillingtopayforagoodMinusamountthebuyeractuallypaysforit2

Fourpossiblebuyers’willingnesstopay13BuyerWillingnesstopayJohnPaulGeorgeRingo$100807050

ConsumerSurplusUsingthedemandcurvetomeasureconsumersurplusConsumersurplusCloselyrelatedtothedemandcurveDemandscheduleDerivedfromthewillingnesstopayofthepossiblebuyersAtanyquantityPricegivenbythedemandcurveWillingnesstopayofthemarginalbuyer4

Thedemandschedule15ThetableshowsthedemandscheduleforthebuyersinTable1.PriceBuyersQuantityDemandedMorethan$100$80to$100$70to$80$50to$70$50orlessNoneJohnJohn,PaulJohn,Paul,GeorgeJohn,Paul,George,Ringo01234

$100807050PriceofAlbumsThedemandcurve16Thegraphshowsthecorrespondingdemandcurve.Notethattheheightofthedemandcurvereflectsbuyers’willingnesstopay04312QuantityofAlbumsJohn’swillingnesstopayPaul’swillingnesstopayGeorge’swillingnesstopayRingo’swillingnesstopayDemand

ConsumerSurplusUsingthedemandcurvetomeasureconsumersurplusDemandcurveReflectsbuyers’willingnesstopayMeasureconsumersurplusConsumersurplusinamarketAreabelowthedemandcurveandabovetheprice7

$100807050PriceofAlbumsMeasuringconsumersurpluswiththedemandcurve28Inpanel(a),thepriceofthegoodis$80,andtheconsumersurplusis$20.Inpanel(b),thepriceofthegoodis$70,andtheconsumersurplusis$40.04312QuantityofAlbumsJohn’sconsumersurplus($20)Demand(a)Price=$80$100807050PriceofAlbums04312QuantityofAlbumsJohn’sconsumersurplus($30)(b)Price=$70Paul’sconsumersurplus($10)Totalconsumersurplus($40)Demand

ConsumerSurplusHowalowerpriceraisesconsumersurplusBuyers-alwayswanttopaylessInitialprice,P1