西方经济学 消费者与生产者.ppt

* This slide shows that, if we are starting from a Q greater than the market equilibrium quantity, we can increase total surplus by reducing Q. The slide demonstrates this for one particular Q (20), but it is true for any Q greater than the equilibrium quantity. Thus, if we continue to reduce Q, total surplus will continue to increase – until we get to the equilibrium quantity. * This slide shows that, if we are starting from a Q less than the market equilibrium quantity, we can increase total surplus by increasing Q. The slide demonstrates this for one particular Q (10), but it is true for any Q below the equilibrium quantity. Thus, if we continue to increase Q, total surplus will continue to increase – until we get to the equilibrium quantity. * This slide summarizes the lesson of the preceding two slides. * This and the following slide contain passages from The Wealth of Nations. It would be hard to overstate the impact of the ideas in these passages. I have included them here because students should be able to better understand and appreciate their significance after having just seen the analysis of market efficiency. If you’re pressed for time, you might delete the first of these two slides, as it is probably less important than the second one. The passages on this first slide convey the sense that the economy is made up of a completely uncoordinated mass of individuals, each acting in his or her own self interest. On the next slide, Smith discusses the invisible hand. Example of central planner: the Communist leaders of the former Soviet Union. * The italicized terms market power and externalities will be formally defined in later chapters. This relatively short chapter has a few main objectives: Welfare analysis of free trade in a good that a country exports, relative to no trade. Welfare analysis of free trade in a good that the country imports, relative to no trade. Welfare analysis of a tariff, relative to free trade in a good