Chapter sixteen Equilibrium 均衡
Chapter Sixteen Equilibrium 均衡
Structure ◆ Market equilibriun Quantity tax and equilibrium ◆ Tax incidence(税收分担) ◆ Deadweight loss(额外净损失)
Structure ◆Market equilibrium ◆Quantity tax and equilibrium ◆Tax incidence （税收分担） ◆Deadweight loss （额外净损失）
Market equilibrium eA market is in equilibrium when total quantity demanded by buyers equals total quantity supplied by sellers
Market Equilibrium ◆A market is in equilibrium when total quantity demanded by buyers equals total quantity supplied by sellers
Market equilibrium Market Market demand supply gEs(p) qeD(p) D(p), s(p)
Market Equilibrium p D(p), S(p) q=D(p) Market demand Market supply q=S(p)
Market equilibrium Market Market demand supply gEs(p) D(p*)=S(p*); the market is in equilibrium p qeD(p) q D(p), s(p)
Market Equilibrium p D(p), S(p) q=D(p) Market demand Market supply q=S(p) p* q* D(p*) = S(p*); the market is in equilibrium
Market equilibrium Market Market demand supply gEs(p) D(p)<s(p); an excess pp of quantity supplied over quantity demanded qeD(p) D(p) s(p) D(p), s(p)
Market Equilibrium p D(p), S(p) q=D(p) Market demand Market supply q=S(p) p* S(p’) D(p’) < S(p’); an excess of quantity supplied over quantity demanded. p’ D(p’)
Market equilibrium Market Market demand supply gEs(p) D(p)<s(p); an excess pp of quantity supplied over quantity demanded qeD(p) D(p) s(p) D(p), s(p) Market price must fall towards p
Market Equilibrium p D(p), S(p) q=D(p) Market demand Market supply q=S(p) p* S(p’) D(p’) < S(p’); an excess of quantity supplied over quantity demanded. p’ D(p’) Market price must fall towards p*
Market equilibrium Market Market demand supply gEs(p) D(p)>s(p);an excess of quantity demanded over quantity supplied p qeD(p) s(p)D(p”)D(p),S(p)
Market Equilibrium p D(p), S(p) q=D(p) Market demand Market supply q=S(p) p* D(p”) D(p”) > S(p”); an excess of quantity demanded over quantity supplied. p” S(p”)
Market equilibrium Market Market demand supply gEs(p) D(p)>s(p);an excess of quantity demanded over quantity supplied. p qeD(p) s(p”)D(p)D(p),S(p) Market price must rise towards p
Market Equilibrium p D(p), S(p) q=D(p) Market demand Market supply q=S(p) p* D(p”) D(p”) > S(p”); an excess of quantity demanded over quantity supplied. p” S(p”) Market price must rise towards p*
Market Equilibrium- Linear d s D(p=a-bp S(p)=C+dp At the equilibrium price p*, D(p*)=s(p*). That is, a-bp =C+dp which gives p b+d * a-c ad+ bc and q =D(p)=S(p)=b+d
Market Equilibrium – Linear D & S D(p) = a − bp S(p) = c + dp At the equilibrium price p*, D(p*) = S(p*). That is, a − bp = c + dp * * which gives p a c b d * = − + and q D p S p ad bc b d * * * = ( ) = ( ) = . + +