Principles+of+Economics+7th+Edition+Mankiw-Solution+Manual Chapter 07

Principles+of+Economics+7th+Edition+Mankiw-Solution+Manual Chapter 07

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1、Chapter7/Consumers,Producers,andtheEfficiencyofMarkets❖1417CONSUMERS,PRODUCERS,ANDTHEEFFICIENCYOFMARKETSrketsWHAT’SNEWINTHESEVENTHEDITION:ThereisanewIntheNewsfeatureon"TheInvisibleHandCanParkYourCar."LEARNINGOBJECTIVES:Bytheendofthischapter,studentsshouldunders

2、tand:Øthelinkbetweenbuyers’willingnesstopayforagoodandthedemandcurve.Øhowtodefineandmeasureconsumersurplus.Øthelinkbetweensellers’costsofproducingagoodandthesupplycurve.Øhowtodefineandmeasureproducersurplus.Øthattheequilibriumofsupplyanddemandmaximizestotalsurp

3、lusinamarket.CONTEXTANDPURPOSE:Chapter7isthefirstchapterinathree-chaptersequenceonwelfareeconomicsandmarketefficiency.Chapter7employsthesupplyanddemandmodeltodevelopconsumersurplusandproducersurplusasameasureofwelfareandmarketefficiency.Theseconceptsarethenutil

4、izedinChapters8and9todeterminethewinnersandlosersfromtaxationandrestrictionsoninternationaltrade.ThepurposeofChapter7istodevelopwelfareeconomics—thestudyofhowtheallocationofresourcesaffectseconomicwell-being.Chapters4through6employedsupplyanddemandinapositivefr

5、amework,whichfocusedonthequestion,“Whatistheequilibriumpriceandquantityinamarket?”Thischapternowaddressesthenormativequestion,“Istheequilibriumpriceandquantityinamarketthebestpossiblesolutiontotheresourceallocationproblem,orisitsimplythepriceandquantitythatbala

6、ncesupplyanddemand?”Studentswilldiscoverthatundermostcircumstancestheequilibriumpriceandquantityisalsotheonethatmaximizeswelfare.©2012CengageLearning.AllRightsReserved.Maynotbescanned,copiedorduplicated,orpostedtoapubliclyaccessiblewebsite,inwholeorinpart.Chapt

7、er7/Consumers,Producers,andtheEfficiencyofMarkets❖141KEYPOINTS:·Consumersurplusequalsbuyers’willingnesstopayforagoodminustheamounttheyactuallypay,anditmeasuresthebenefitbuyersgetfromparticipatinginamarket.Consumersurpluscanbecomputedbyfindingtheareabelowthedema

8、ndcurveandabovetheprice.·Producersurplusequalstheamountsellersreceivefortheirgoodsminustheircostsofproduction,anditmeasuresthebenefitsellersgetfromparticipatinginamarket.Pro

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