TheAnalysisofCompetitiveMarkets幻灯片.ppt

Chapter 9;Topics to be Discussed;Topics to be Discussed;Evaluating the Gains and Losses fromGovernment Policies--Consumer and Producer Surplus;Producer Surplus;To determine the welfare effect of a governmental policy we can measure the gain or loss in consumer and producer surplus. Welfare Effects Gains and losses caused by government intervention in the market.;The loss to producers is the sum of rectangle A and triangle C. Triangle B and C together measure the deadweight loss.;Observations: The total loss is equal to area B + C. The total change in surplus = (A - B) + (-A - C) = -B - C T