消费者生产者.ppt

7 Consumers, Producers, and the Efficiency of Markets REVISITING THE MARKET EQUILIBRIUM Do the equilibrium price and quantity maximize the total welfare of buyers and sellers? Market equilibrium reflects the way markets allocate scarce resources. Whether the market allocation is desirable can be addressed by welfare economics. Welfare Economics Welfare economics is the study of how the allocation of resources affects economic well-being. Buyers and sellers receive benefits from taking part in the market. The equilibrium in a market maximizes the total welfare of buyers and sellers. Welfare Economics Equilibrium in the market results in maximum benefits, and therefore maximum total welfare for both the consumers and the producers of the product. Welfare Economics Consumer surplus measures economic welfare from the buyer’s side. Producer surplus measures economic welfare from the seller’s side. CONSUMER SURPLUS Willingness to pay is the maximum amount that a buyer will pay for a good. It measures how much the buyer values the good or service. CONSUMER SURPLUS Consumer surplus is the buyer’s willingness to pay for a good minus the amount the buyer actually pays for it. Table 1 Four Possible Buyers’ Willingness to Pay CONSUMER SURPLUS The market demand curve depicts the various quantities that buyers would be willing and able to purchase at different prices. The Demand Schedule and the Demand Curve Figure 1 The Demand Schedule and the Demand Curve Figure 2 Measuring Consumer Surplus with the Demand Curve Figure 2 Measuring Consumer Surplus with the Demand Curve Using the Demand Curve to Measure Consumer Surplus The area below the demand curve and above the price measures the consumer surplus in the market. Figure 3 How the Price Affects Consumer Surplus Figure 3 How the Price Affects Consumer Surplus What Does Consumer Surplus Measure? Consumer surplus, the amount that buyers are willing to pay for a good minus the amount they actually pay for it, measures the bene