中微15-16章课件.pptVIP

MICROECONOMICS Ⅱ微观经济学Ⅱ ZHOU Jimei 周吉梅 International Business School Chapter 15 Market Demand Outline Individual and market demand Elasticity Elasticity and Revenue Elasticity and Marginal revenue Laffer curve Market demand Often think of market behaving like a single individual representative consumer model To get market demand, just add up individual demands horizontal summation principle Inverse of aggregate demand curve measures the MRS for each individual Numerical example Suppose the inverse of the domestic demand function P = 40 - Q / 3 Now, add an export demand P = 60 – Q What’s the total market demand? 2. Elasticity measures responsiveness of demand to price Can we use slope to measure the responsiveness? Elasticity is a better way: independent of units of measurement The price elasticity of demand ε = (dq/q) / (dp/p) = (p/q) / (dp/dq) = slope of the ray/ slope of the curve Example for linear demand curve Question Is there demand function whose price elasticity is always constant along this demand curve? Suppose demand takes form q = Apb Other expression of elasticity Other elasticity income elasticity of demand cross-price elasticity of demand own-price elasticity of supply 3. Elasticity and Revenue Elasticity and Revenue Elasticity and Revenue Elasticity and Revenue Summary 4. Elasticity and Marginal Revenue A seller’s marginal revenue is the rate at which revenue changes with the number of units sold by the seller. Elasticity and Marginal Revenue Elasticity and Marginal Revenue Summary A linear example Laffer curve how does tax revenue respond to changes in tax rates? How to construct the model? Chapter 16 Equilibrium Outline Market Equilibrium Special cases Taxes: nice example of comparative statics Passing along a tax Deadweight loss of a tax Pareto efficiency 1. Market Equilibrium Market Equilibrium An example of calculating a market equilibrium when the market demand and supply curves are linear. Market Equilibrium Ma