QUANTITY DEMANDED QUANTITY DEMANDED PRICE (BUSINESS TRAVELERS) (VACATIONERS) $150 2.100 1.000 200 2000 800 250 1,900 600 300 1,800 400 a.As the price of tickets rises from $200 to $250,what is the price elasticity of demand for (i)business travelers and (ii)vacationers? b Why night vacationers have adifferent elasticity than business travelers? Supp that schedule for compac QUANTITY DEMANDED PRICE (NCOME_S10,000) NCOME_$12,000) $8 40 50 10 32 45 1 24 30 14 16 16 2 a.Calculate your price elasticity of demand as the price of compact discs increases from $8 to $10 if (i)your income is $10,000,and (ii)your income is $12.000. h caleulate your income elasticity ofder and as your income increases from $10,000 to $12.000 if(i)the price is$12,and (ii)the price is$16 (四)教学方法与手段 课堂讲授 第六章 Supply,Demand,and Government Policies (·) 目的与要求 oter,students should understand: government po ies th place ceiling on prices the effects of government policies that put a floor under prices 3. how a tax on a good affects the price of the good and the quantity sold 4.that taxes levied on buyers and taxes levies on sellers are equivalent 5.how the burden of a tax is split between buyers and sellers 二) 教学内容 Controls on Prices A. Definition of Price Ceiling:a legal maximum on the price at which a good can be sold B. Defin ion of Price Floor:a legal minimum on the price at which a good can be sold C How Price Ceilings Affect Market Outcomes D How Price Floors Affect Market Outcomes 13 13 QUANTITY DEMANDED QUANTITY DEMANDED PRICE (BUSINESS TRAVELERS) (VACATIONERS) $150 2,100 1,000 200 2,000 800 250 1,900 600 300 1,800 400 a. As the price of tickets rises from $200 to $250, what is the price elasticity of demand for (i) business travelers and (ii) vacationers? b. Why might vacationers have a different elasticity than business travelers? 2. Suppose that your demand schedule for compact discs is as follows: QUANTITY DEMANDED QUANTITY DEMANDED PRICE (INCOME _ $10,000) (INCOME _ $12,000) $ 8 40 50 10 32 45 12 24 30 14 16 20 16 8 12 a. Calculate your price elasticity of demand as the price of compact discs increases from $8 to $10 if (i) your income is $10,000, and (ii) your income is $12,000. b. Calculate your income elasticity of demand as your income increases from $10,000 to $12,000 if (i) the price is $12, and (ii) the price is $16. （四） 教学方法与手段 课堂讲授。 第六章 Supply, Demand, and Government Policies （一） 目的与要求 By the end of this chapter, students should understand: 1. the effects of government policies that place a ceiling on prices 2. the effects of government policies that put a floor under prices 3. how a tax on a good affects the price of the good and the quantity sold 4. that taxes levied on buyers and taxes levies on sellers are equivalent 5. how the burden of a tax is split between buyers and sellers （二） 教学内容 I. Controls on Prices A. Definition of Price Ceiling: a legal maximum on the price at which a good can be sold. B. Definition of Price Floor: a legal minimum on the price at which a good can be sold. C. How Price Ceilings Affect Market Outcomes D. How Price Floors Affect Market Outcomes