ch04Demand and Supply Applications(宏观经济学Karl Case, Ray Fair)概要1.pptVIP

Demand and Supply Applications The Price System:Rationing and Allocating Resources The market system, performs two important and closely related functions: Resource allocation: the market system determines the allocation of resources among produces and the final mix of outputs. The Price System:Rationing and Allocating Resources The market system, performs two important and closely related functions: Price Rationing A decrease in supply creates a shortage at the original price. Price Rationing There is some price that will clear any market. Constraints on the Market A price ceiling is a maximum price that sellers may charge for a good, usually set by government. In 1974, the government set a price ceiling to distribute the available supply of gasoline. At an imposed price of 57 cents per gallon, the result was excess demand. Alternative Rationing Mechanisms Queuing is a nonprice rationing system that uses waiting in line as a means of distributing goods and services. Alternative Rationing Mechanisms Favored customers are those who receive special treatment from dealers during situations when there is excess demand. Ration coupons are tickets or coupons that entitle individuals to purchase a certain amount of a given product per month. Alternative Rationing Mechanisms Attempts to restrict prices often result in the evolution of a black market. A black market is a market in which illegal trading takes place at market-determined prices. Alternative Rationing Mechanisms The problem with rationing systems is that excess demand is created but not eliminated. No matter how good the intentions of private organizations and governments, it is very difficult to prevent the price system from operating and to stop the willingness to pay from asserting itself. Prices and the Allocation of Resources Price changes resulting from shifts of demand cause profits to rise or fall. Profits attract capital; losses lead to disinvestment. Higher wages attract labor and encourage workers