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№1 слайд![Supply, Demand and Government](/documents_6/cfbf759a6fb62e1576b06ad7585784c9/img0.jpg)
Содержание слайда: Supply, Demand and Government Policies
Chapter 6
№2 слайд![Supply, Demand, and](/documents_6/cfbf759a6fb62e1576b06ad7585784c9/img1.jpg)
Содержание слайда: Supply, Demand, and 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 of policies.
№3 слайд![Price Controls... Are usually](/documents_6/cfbf759a6fb62e1576b06ad7585784c9/img2.jpg)
Содержание слайда: 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.
№4 слайд![Price Ceilings amp Price](/documents_6/cfbf759a6fb62e1576b06ad7585784c9/img3.jpg)
Содержание слайда: Price Ceilings & Price Floors
Price Ceiling
A legally established maximum price at which a good can be sold.
Price Floor
A legally established minimum price at which a good can be sold.
№5 слайд![Price Ceilings Two outcomes](/documents_6/cfbf759a6fb62e1576b06ad7585784c9/img4.jpg)
Содержание слайда: 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.
№6 слайд![A Price Ceiling That Is Not](/documents_6/cfbf759a6fb62e1576b06ad7585784c9/img5.jpg)
Содержание слайда: A Price Ceiling That Is Not Binding...
№7 слайд![A Price Ceiling That Is](/documents_6/cfbf759a6fb62e1576b06ad7585784c9/img6.jpg)
Содержание слайда: A Price Ceiling That Is Binding...
№8 слайд![Effects of Price Ceilings A](/documents_6/cfbf759a6fb62e1576b06ad7585784c9/img7.jpg)
Содержание слайда: Effects of Price Ceilings
A binding price ceiling creates ...
shortages because QD > QS.
Example: Gasoline shortage of the 1970s
nonprice rationing
Examples: Long lines, Discrimination by sellers
№9 слайд![Lines at the Gas Pump](/documents_6/cfbf759a6fb62e1576b06ad7585784c9/img8.jpg)
Содержание слайда: Lines at the Gas Pump
№10 слайд![The Price Ceiling on Gasoline](/documents_6/cfbf759a6fb62e1576b06ad7585784c9/img9.jpg)
Содержание слайда: The Price Ceiling on Gasoline Is Not Binding...
№11 слайд![The Price Ceiling on Gasoline](/documents_6/cfbf759a6fb62e1576b06ad7585784c9/img10.jpg)
Содержание слайда: The Price Ceiling on Gasoline Is Binding...
№12 слайд![Rent Control Rent controls](/documents_6/cfbf759a6fb62e1576b06ad7585784c9/img11.jpg)
Содержание слайда: 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.”
№13 слайд![Rent Control in the Short](/documents_6/cfbf759a6fb62e1576b06ad7585784c9/img12.jpg)
Содержание слайда: Rent Control in the Short Run...
№14 слайд![Rent Control in the Long](/documents_6/cfbf759a6fb62e1576b06ad7585784c9/img13.jpg)
Содержание слайда: Rent Control in the Long Run...
№15 слайд![Price Floors When the](/documents_6/cfbf759a6fb62e1576b06ad7585784c9/img14.jpg)
Содержание слайда: 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.
№16 слайд![A Price Floor That Is Not](/documents_6/cfbf759a6fb62e1576b06ad7585784c9/img15.jpg)
Содержание слайда: A Price Floor That Is Not Binding...
№17 слайд![A Price Floor That Is](/documents_6/cfbf759a6fb62e1576b06ad7585784c9/img16.jpg)
Содержание слайда: A Price Floor That Is Binding...
№18 слайд![Effects of a Price Floor A](/documents_6/cfbf759a6fb62e1576b06ad7585784c9/img17.jpg)
Содержание слайда: Effects of a Price Floor
A price floor prevents supply and demand from moving toward the equilibrium price and quantity.
When the market price hits the floor, it can fall no further, and the market price equals the floor price.
№19 слайд![Effects of a Price Floor A](/documents_6/cfbf759a6fb62e1576b06ad7585784c9/img18.jpg)
Содержание слайда: 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, Agricultural price supports
№20 слайд![The Minimum Wage](/documents_6/cfbf759a6fb62e1576b06ad7585784c9/img19.jpg)
Содержание слайда: The Minimum Wage
№21 слайд![The Minimum Wage](/documents_6/cfbf759a6fb62e1576b06ad7585784c9/img20.jpg)
Содержание слайда: The Minimum Wage
№22 слайд![The Minimum Wage](/documents_6/cfbf759a6fb62e1576b06ad7585784c9/img21.jpg)
Содержание слайда: The Minimum Wage
№23 слайд![Taxes Governments levy taxes](/documents_6/cfbf759a6fb62e1576b06ad7585784c9/img22.jpg)
Содержание слайда: Taxes
Governments levy taxes to raise revenue for public projects.
№24 слайд![What are some potential](/documents_6/cfbf759a6fb62e1576b06ad7585784c9/img23.jpg)
Содержание слайда: 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.
№25 слайд![Taxes Tax incidence is the](/documents_6/cfbf759a6fb62e1576b06ad7585784c9/img24.jpg)
Содержание слайда: 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.
№26 слайд![Impact of a Tax Levied on](/documents_6/cfbf759a6fb62e1576b06ad7585784c9/img25.jpg)
Содержание слайда: Impact of a 50¢ Tax Levied on Buyers...
№27 слайд![Impact of a Tax Levied on](/documents_6/cfbf759a6fb62e1576b06ad7585784c9/img26.jpg)
Содержание слайда: Impact of a 50¢ Tax Levied on Buyers...
№28 слайд![What was the impact of tax?](/documents_6/cfbf759a6fb62e1576b06ad7585784c9/img27.jpg)
Содержание слайда: 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.
№29 слайд![Impact of a Tax on Sellers...](/documents_6/cfbf759a6fb62e1576b06ad7585784c9/img28.jpg)
Содержание слайда: Impact of a 50¢ Tax on Sellers...
№30 слайд![A Payroll Tax](/documents_6/cfbf759a6fb62e1576b06ad7585784c9/img29.jpg)
Содержание слайда: A Payroll Tax
№31 слайд![The Incidence of Tax In what](/documents_6/cfbf759a6fb62e1576b06ad7585784c9/img30.jpg)
Содержание слайда: 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?
№32 слайд![Elastic Supply, Inelastic](/documents_6/cfbf759a6fb62e1576b06ad7585784c9/img31.jpg)
Содержание слайда: Elastic Supply, Inelastic Demand...
№33 слайд![Inelastic Supply, Elastic](/documents_6/cfbf759a6fb62e1576b06ad7585784c9/img32.jpg)
Содержание слайда: Inelastic Supply, Elastic Demand...
№34 слайд![So, how is the burden of the](/documents_6/cfbf759a6fb62e1576b06ad7585784c9/img33.jpg)
Содержание слайда: 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.
№35 слайд![Summary Price controls](/documents_6/cfbf759a6fb62e1576b06ad7585784c9/img34.jpg)
Содержание слайда: 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 rent control.
A price floor is a legal minimum on the price of a good or a service. An example is the minimum wage.
№36 слайд![Summary Taxes are used to](/documents_6/cfbf759a6fb62e1576b06ad7585784c9/img35.jpg)
Содержание слайда: 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 the price paid by buyers and the price received by sellers.
№37 слайд![Summary The incidence of a](/documents_6/cfbf759a6fb62e1576b06ad7585784c9/img36.jpg)
Содержание слайда: 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.
№38 слайд![](/documents_6/cfbf759a6fb62e1576b06ad7585784c9/img37.jpg)
№39 слайд![A Price Ceiling That Is Not](/documents_6/cfbf759a6fb62e1576b06ad7585784c9/img38.jpg)
Содержание слайда: A Price Ceiling That Is Not Binding...
№40 слайд![A Price Ceiling That Is](/documents_6/cfbf759a6fb62e1576b06ad7585784c9/img39.jpg)
Содержание слайда: A Price Ceiling That Is Binding...
№41 слайд![The Price Ceiling on Gasoline](/documents_6/cfbf759a6fb62e1576b06ad7585784c9/img40.jpg)
Содержание слайда: The Price Ceiling on Gasoline Is Not Binding...
№42 слайд![The Price Ceiling on Gasoline](/documents_6/cfbf759a6fb62e1576b06ad7585784c9/img41.jpg)
Содержание слайда: The Price Ceiling on Gasoline Is Binding...
№43 слайд![Rent Control in the Short](/documents_6/cfbf759a6fb62e1576b06ad7585784c9/img42.jpg)
Содержание слайда: Rent Control in the Short Run...
№44 слайд![Rent Control in the Long](/documents_6/cfbf759a6fb62e1576b06ad7585784c9/img43.jpg)
Содержание слайда: Rent Control in the Long Run...
№45 слайд![A Price Floor That Is Not](/documents_6/cfbf759a6fb62e1576b06ad7585784c9/img44.jpg)
Содержание слайда: A Price Floor That Is Not Binding...
№46 слайд![A Price Floor That Is](/documents_6/cfbf759a6fb62e1576b06ad7585784c9/img45.jpg)
Содержание слайда: A Price Floor That Is Binding...
№47 слайд![The Minimum Wage](/documents_6/cfbf759a6fb62e1576b06ad7585784c9/img46.jpg)
Содержание слайда: The Minimum Wage
№48 слайд![The Minimum Wage](/documents_6/cfbf759a6fb62e1576b06ad7585784c9/img47.jpg)
Содержание слайда: The Minimum Wage
№49 слайд![Impact of a Tax Levied on](/documents_6/cfbf759a6fb62e1576b06ad7585784c9/img48.jpg)
Содержание слайда: Impact of a 50¢ Tax Levied on Buyers...
№50 слайд![Impact of a Tax Levied on](/documents_6/cfbf759a6fb62e1576b06ad7585784c9/img49.jpg)
Содержание слайда: Impact of a 50¢ Tax Levied on Buyers...
№51 слайд![Impact of a Tax on Sellers...](/documents_6/cfbf759a6fb62e1576b06ad7585784c9/img50.jpg)
Содержание слайда: Impact of a 50¢ Tax on Sellers...
№52 слайд![A Payroll Tax](/documents_6/cfbf759a6fb62e1576b06ad7585784c9/img51.jpg)
Содержание слайда: A Payroll Tax
№53 слайд![Elastic Supply, Inelastic](/documents_6/cfbf759a6fb62e1576b06ad7585784c9/img52.jpg)
Содержание слайда: Elastic Supply, Inelastic Demand...
№54 слайд![Inelastic Supply, Elastic](/documents_6/cfbf759a6fb62e1576b06ad7585784c9/img53.jpg)
Содержание слайда: Inelastic Supply, Elastic Demand...