ch_4 - Introduction to Economics Textbook: Hubbard &...

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Introduction to Economics Textbook: Hubbard & O’Brien - Economics Today’s Lecture Coverage: Chapter 4 - Economic Efficiency, Government Price Setting, and Taxes Chapter 4 - Appendix: Quantitative Supply and Demand Analysis Chapter 6 - Elasticity: The Responsiveness of Demand and Supply by Erdem Aktug Lehigh University, Rauch Business Center, Room 211 Phone: 610-758-5348 Email: rea204@lehigh.edu
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Should the Government Control Apartment Rents? 4.1 Understand the concepts of consumer surplus and producer surplus . 4.2 Understand the concept of economic efficiency . 4.3 Understand the economic effect of government imposed price ceilings and price floors . 4.4 Analyze the economic impact of taxes . APPENDIX Use quantitative demand and supply analysis. Learning Objectives New York City has two million apartments, about one million of which are subject to rent control. The other one million apartments have their rents determined in the market by the demand and supply for apartments.
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Price ceiling A legally determined maximum price that sellers may charge. Price floor A legally determined minimum price that sellers may receive. Economic Efficiency, Government Price Setting, and Taxes
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Consumer surplus The difference between the highest price a consumer is willing to pay and the price the consumer actually pays. Marginal benefit The additional benefit to a consumer from consuming one more unit of a good or service. 4.1 Consumer Surplus and Producer Surplus Consumer Surplus Learning Objective 4.1
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Learning Objective 4.1 Consumer Surplus and Producer Surplus Consumer Surplus FIGURE 4-1 Deriving the Demand Curve for Chai Tea
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Consumer Surplus and Producer Surplus Consumer Surplus FIGURE 4-2 Measuring Consumer Surplus Learning Objective 4.1
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Consumer Surplus and Producer Surplus FIGURE 4-3 Total Consumer Surplus in the Market for Chai Tea Learning Objective 4.1 Consumer Surplus
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The Consumer Surplus from Satellite Television Consumer surplus allows us to measure the benefit consumers
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ch_4 - Introduction to Economics Textbook: Hubbard &...

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