曼昆微观经济学原理第六章.pptVIP

* * * * * * * * * * SUPPLY, DEMAND, AND GOVERNMENT POLICIES * CASE STUDY: Who Pays the Luxury Tax? The market for yachts P Q D S Tax Buyers’ share of tax burden Sellers’ share of tax burden PB PS Demand is price-elastic. In the short run, supply is inelastic. Hence, companies that build yachts pay most of the tax. SUPPLY, DEMAND, AND GOVERNMENT POLICIES * CONCLUSION: Government Policies and the Allocation of Resources Each of the policies in this chapter affects the allocation of society’s resources. Example 1: A tax on pizza reduces eq’m Q. With less production of pizza, resources (workers, ovens, cheese) will become available to other industries. Example 2: A binding minimum wage causes a surplus of workers, a waste of resources. So, it’s important for policymakers to apply such policies very carefully. CHAPTER SUMMARY A price ceiling is a legal maximum on the price of a good. An example is rent control. If the price ceiling is below the eq’m price, it is binding and causes a shortage. A price floor is a legal minimum on the price of a good. An example is the minimum wage. If the price floor is above the eq’m price, it is binding and causes a surplus. The labor surplus caused by the minimum wage is unemployment. * CHAPTER SUMMARY A tax on a good places a wedge between the price buyers pay and the price sellers receive, and causes the eq’m quantity to fall, whether the tax is imposed on buyers or sellers. The incidence of a tax is the division of the burden of the tax between buyers and sellers, and does not depend on whether the tax is imposed on buyers or sellers. The incidence of the tax depends on the price elasticities of supply and demand. * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * SUPPLY, DEMAND, AND GOVERNMENT POLICIES ? 2010 South-Western, a part of Cengage Learning, all rights reserved C H A P T E R 2010 update Supply, Demand, and Government Policies Macroeconomics P R I N C