经济学原理蔡教学（洪滨）Chapter4.pptVIP

The Minimum-Wage Controversy Theoretically the rise in the minimum wage (a price floor of the market price for labor) leads to a rise in unemployment and a decrease in employment of low-skilled workers. Evidence from the United States indicates that a 10% increase in the minimum wage would reduce employment of teenagers by 1-3% The impact on adult employment is even smaller The effects on employment, unemployment, and income for different group of people How about China? The “New Labor Contract Law”. * Effects of Price Ceilings Price ceilings above equilibrium price create excess demand. Excess demand sometimes takes the form of queues Lines at gas stations during 1974 shortage Sometimes allocate by coupons and rationing (China’s central planning era: 票证时代） Natural gas shortage of the mid ’70’s Producers typically lose, but some consumers gain. Some consumers lose. Car License Allocation: Beijing and Shanghai * Effects of Price Controls * Price is regulated to be no higher than Pmax Quantity supplied falls and quantity demanded increases A shortage results Reminder: Review Chapter 4 Preview Chapter 5 Thank you! * * * * * * * * * * * 经济学原理：第四讲 蔡洪滨 * 北京大学光华管理学院 Ch. 4: Supply and Demand: Elasticity and Applications A. Price Elasticity of Demand and Supply B. Applications to Major Economic Issues * A. Price Elasticityof Supply and Demand Not only are we concerned with what direction price and quantity will move when the market conditions change, but we are concerned about how much they change Elasticity gives a way to measure by how much a variable will change with the change in another variable Specifically, it gives the percentage change in one variable resulting from a one percent change in another * Price Elasticity of Demand Measures the sensitivity of quantity demanded to price changes It measures the percentage change in the quantity demanded of a good that result