Chapter_5_Micro_clear

Chapter_5_Micro_clear - Chapter 5 Welfare Economics...

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Chapter 5 Welfare Economics Microeconomics by Curtis, Irvine, and Begg Microeconomics by Curtis, Irvine, and Begg Canadian Edition, Canadian Edition, McGraw-Hill Ryerson, 2007 McGraw-Hill Ryerson, 2007
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Chapter 5 2 Learning Outcomes By the end of this chapter you should learn: By the end of this chapter you should learn: Consumer and supplier surpluses Efficient market outcomes Taxation and efficiency Market failure and negative externalities Market failure and positive externalities Other types of market failure Equality, justice, and efficiency
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Chapter 5.1 3 Consumer and Supplier Surpluses Individual Valuation Alex 900 Brian 800 Cathy 700 Don 600 Evan 500 Frank 400 Individual Reservation Gladys 300 Heward 350 Ian 400 Jeff 450 Kirin 500 Lynne 550 Demand Supply $500 is the equilibrium Price At $500, five apartments are rented
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Chapter 5.1 4 Consumer and Supplier Surplus Alex Brian Cathy Don Evan Equilibrium price Equilibrium price 500 900 300 CS = 400 CS = 400 CS = 300 CS = 300 CS = 200 CS = 200 CS = 100 CS = 100 CS = 0 CS = 0
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5 Consumer and Supplier Surplus Kirin Equilibrium price Equilibrium price 500 900 300 PS = 0 PS = 0 PS = 200 PS = 200 Gladys Heward PS = 150 PS = 150 Ian PS = 100 PS = 100 Jeff PS = 50
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Chapter_5_Micro_clear - Chapter 5 Welfare Economics...

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