北大微观经济学课件(英文版)ch2BudgetConstraint-(精品课件).pptVIP

* 中级微观经济学 How do the budget set and budget constraint change as p1 decreases from p1’ to p1”? Original budget set x2 x1 m/p2 m/p1’ m/p1” New affordable choices Budget constraint pivots; slope flattens from -p1’/p2 to -p1”/p2 -p1’/p2 -p1”/p2 * 中级微观经济学 Budget Constraints - Price Changes Reducing the price of one commodity pivots the constraint outward. No old choice is lost and new choices are added, so reducing one price cannot make the consumer worse off. * 中级微观经济学 Budget Constraints - Price Changes Similarly, increasing one price pivots the constraint inwards, reduces choice and may (typically will) make the consumer worse off. * 中级微观经济学 Uniform Ad Valorem Sales Taxes An ad valorem sales tax （从价营业税）levied at a rate of 5% increases all prices by 5%, from p to (1+0.05)p = 1.05p. An ad valorem sales tax levied at a rate of t increases all prices by tp from p to (1+t)p. A uniform sales tax is applied uniformly to all commodities. * 中级微观经济学 Uniform Ad Valorem Sales Taxes A uniform sales tax levied at rate t changes the constraint from p1x1 + p2x2 = mto (1+t)p1x1 + (1+t)p2x2 = m * 中级微观经济学 Uniform Ad Valorem Sales Taxes A uniform sales tax levied at rate t changes the constraint from p1x1 + p2x2 = mto (1+t)p1x1 + (1+t)p2x2 = mi.e. p1x1 + p2x2 = m/(1+t). * 中级微观经济学 Uniform Ad Valorem Sales Taxes x2 x1 p1x1 + p2x2 = m p1x1 + p2x2 = m/(1+t) * 中级微观经济学 Uniform Ad Valorem Sales Taxes x2 x1 Equivalent income lossis * 中级微观经济学 Uniform Ad Valorem Sales Taxes x2 x1 A uniform ad valoremsales tax levied at rate tis equivalent to an incometax levied at rate * 中级微观经济学 The Food Stamp Program Food stamps are coupons that can be legally exchanged only for food. How does a commodity-specific gift such as a food stamp alter a family’s budget constraint? * 中级微观经济学 The Food Stamp Program Suppose m = $100, pF = $1 and the price of “other goods” is pG = $1. “Other goods” is a composi