ECO202_Ch09 copy - CHAPTER 9 The Analysis of Competitive Markets CHAPTER OUTLINE 9.1 Evaluating the Gains and Losses from Government PoliciesConsumer

ECO202_Ch09 copy - CHAPTER 9 The Analysis of Competitive...

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9.1 Evaluating the Gains and Losses from Government Policies—Consumer and Producer Surplus 9.2 The Efficiency of Competitive Markets 9.3 Minimum Prices 9.4 Price Supports and Production Quotas 9.5 Import Quotas and Tariffs 9.6 The Impact of a Tax or Subsidy C H A P T E R 9 The Analysis of Competitive Markets CHAPTER OUTLINE
Consumer and Producer Surplus 9.1 Consumer surplus and producer surplus are used to study the welfare effects of a government policy We use consumer surplus and producer surplus to: 1. Demonstrate the efficiency of a competitive market 2. Calculate the response of markets to changing economic conditions or government policies to evaluate the resulting gains and losses to consumers and producers
CONSUMER AND PRODUCER SURPLUS
The Efficiency of a Competitive Market 9.2 Economic efficiency Maximization of consumer surplus plus producer surplus Market failure Situation in which an unregulated competitive market is inefficient, i.e.

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