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101 lecture 7

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  • 1. Next Exam Exam 3 October 24th Chapter 7, 8, 9
  • 2. Microeconomics Lecture 7 Consumers, Producers, and the Efficiency of Markets
  • 3. Key Terms welfare economics willingness to pay consumer or buyer surplus value (consumer surplus) cost producer or seller surplus value (producer surplus) efficiency
  • 4. Economic Surplus Consumer - Buyer Producer - Seller
  • 5. Value Versus Price
  • 6. Sellers value less than price Buyers value more than price
  • 7. Always TwoValues in a trade
  • 8. Always TwoValues in a trade Difference between what I am willing to pay for and the price Difference between what I am willing to sell for and the price
  • 9. 0
  • 10. 0 100
  • 11. BuyerValue 60 0 100
  • 12. BuyerValue 60 SellerValue 40 0 100
  • 13. BuyerValue 60 SellerValue 40 0 100
  • 14. BuyerValue 60 SellerValue 40 Value Range 0 100
  • 15. BuyerValue 60 SellerValue 40 Value RangePrice 0 100
  • 16. BuyerValue 60 SellerValue 40 Value Range Price 0 100
  • 17. BuyerValue 60 SellerValue 40 Value Range Price 0 100
  • 18. BuyerValue 60 SellerValue 40 Value RangePrice 0 100
  • 19. BuyerValue 60 SellerValue 40 Value RangePrice Price between 40 and 60 will get sold 0 100
  • 20. BuyerValue 60 SellerValue 40 Value RangePrice Price between 40 and 60 will get sold As long as price is in the value range the pizza will sell 0 100
  • 21. BuyerValue 60 SellerValue 40 Value RangePrice Price between 40 and 60 will get sold As long as price is in the value range the pizza will sell 0 100 PotentialValue = BuyerValue - SellerValue
  • 22. BuyerValue 60 SellerValue 40 Value RangePrice Price between 40 and 60 will get sold As long as price is in the value range the pizza will sell 0 100 PotentialValue = BuyerValue - SellerValue = 60 - 40 = 20
  • 23. BuyerValue 60 SellerValue 40 Value RangePrice Price between 40 and 60 will get sold As long as price is in the value range the pizza will sell 0 100 PotentialValue = BuyerValue - SellerValue = 60 - 40 = 20
  • 24. BuyerValue 60 SellerValue 40 Value RangePrice Price between 40 and 60 will get sold As long as price is in the value range the pizza will sell 0 100 PotentialValue = BuyerValue - SellerValue = 60 - 40 = 20 Buyer or Consumer surplus value above price and below Buyer value
  • 25. BuyerValue 60 SellerValue 40 Value RangePrice Price between 40 and 60 will get sold As long as price is in the value range the pizza will sell 0 100 PotentialValue = BuyerValue - SellerValue = 60 - 40 = 20 Buyer or Consumer surplus value above price and below Buyer value
  • 26. BuyerValue 60 SellerValue 40 Value RangePrice Price between 40 and 60 will get sold As long as price is in the value range the pizza will sell 0 100 PotentialValue = BuyerValue - SellerValue = 60 - 40 = 20 Buyer or Consumer surplus value above price and below Buyer value Seller or Producer surplus value below price and above Seller value
  • 27. Invisible Hand
  • 28. Invisible Hand Buyer with highest value will be matched to the Seller with the lowest value
  • 29. SurplusValue is equal to the difference between value and price
  • 30. Economic Surplus is equal to seller surplus plus buyer surplus
  • 31. Buyers Riyadh Pizza Market
  • 32. Buyers Ali Abdullah Ahmed Faisal Mohammed Mahmood Sultan Turki 0 5 10 15 20 25 30 35 40 Riyadh Pizza Market
  • 33. Buyers Ali Abdullah Ahmed Faisal Mohammed Mahmood Sultan Turki 0 5 10 15 20 25 30 35 40 40 Riyadh Pizza Market
  • 34. Buyers Ali Abdullah Ahmed Faisal Mohammed Mahmood Sultan Turki 0 5 10 15 20 25 30 35 40 40 38 Riyadh Pizza Market
  • 35. Buyers Ali Abdullah Ahmed Faisal Mohammed Mahmood Sultan Turki 0 5 10 15 20 25 30 35 40 40 38 36 Riyadh Pizza Market
  • 36. Buyers Ali Abdullah Ahmed Faisal Mohammed Mahmood Sultan Turki 0 5 10 15 20 25 30 35 40 40 38 36 34 Riyadh Pizza Market
  • 37. Buyers Ali Abdullah Ahmed Faisal Mohammed Mahmood Sultan Turki 0 5 10 15 20 25 30 35 40 40 38 36 34 32 Riyadh Pizza Market
  • 38. Buyers Ali Abdullah Ahmed Faisal Mohammed Mahmood Sultan Turki 0 5 10 15 20 25 30 35 40 40 38 36 34 32 30 Riyadh Pizza Market
  • 39. Buyers Ali Abdullah Ahmed Faisal Mohammed Mahmood Sultan Turki 0 5 10 15 20 25 30 35 40 40 38 36 34 32 30 28 Riyadh Pizza Market
  • 40. Buyers Ali Abdullah Ahmed Faisal Mohammed Mahmood Sultan Turki 0 5 10 15 20 25 30 35 40 40 38 36 34 32 30 28 26 Riyadh Pizza Market
  • 41. Buyers Ali Abdullah Ahmed Faisal Mohammed Mahmood Sultan Turki 0 5 10 15 20 25 30 35 40 40 38 36 34 32 30 28 26 Price 29 Riyadh Pizza Market
  • 42. Buyers Ali Abdullah Ahmed Faisal Mohammed Mahmood Sultan Turki 0 5 10 15 20 25 30 35 40 40 38 36 34 32 30 28 26 Price 29 Riyadh Pizza Market
  • 43. Buyers Ali Abdullah Ahmed Faisal Mohammed Mahmood Sultan Turki 0 5 10 15 20 25 30 35 40 40 38 36 34 32 30 28 26 Price 29 Riyadh Pizza Market
  • 44. Buyers Ali Abdullah Ahmed Faisal Mohammed Mahmood Sultan Turki 0 5 10 15 20 25 30 35 40 40 38 36 34 32 30 28 26 Price 29 Riyadh Pizza Market
  • 45. Buyers Ali Abdullah Ahmed Faisal Mohammed Mahmood Sultan Turki 0 5 10 15 20 25 30 35 40 40 38 36 34 32 30 28 26 Price 29 Riyadh Pizza Market
  • 46. Buyers Ali Abdullah Ahmed Faisal Mohammed Mahmood Sultan Turki 0 5 10 15 20 25 30 35 40 40 38 36 34 32 30 28 26 Price 29 Riyadh Pizza Market
  • 47. Buyers Ali Abdullah Ahmed Faisal Mohammed Mahmood Sultan Turki 0 5 10 15 20 25 30 35 40 40 38 36 34 32 30 28 26 Price 29 Riyadh Pizza Market
  • 48. Buyers Ali Abdullah Ahmed Faisal Mohammed Mahmood Sultan Turki 0 5 10 15 20 25 30 35 40 40 38 36 34 32 30 28 26 Price 35 Riyadh Pizza Market
  • 49. Buyers Ali Abdullah Ahmed Faisal Mohammed Mahmood Sultan Turki 0 5 10 15 20 25 30 35 40 40 38 36 34 32 30 28 26 Price 35 Riyadh Pizza Market
  • 50. Buyers Ali Abdullah Ahmed Faisal Mohammed Mahmood Sultan Turki 0 5 10 15 20 25 30 35 40 40 38 36 34 32 30 28 26 Price 35 Riyadh Pizza Market
  • 51. Buyers Ali Abdullah Ahmed Faisal Mohammed Mahmood Sultan Turki 0 5 10 15 20 25 30 35 40 40 38 36 34 32 30 28 26 Price 35 Riyadh Pizza Market
  • 52. Customer Value Price Surplus Ali 40 29 11 Abdullah 38 29 9 Ahmed 36 29 7 Faisal 34 29 5 Mohammed 32 29 3 Mahmood 30 29 1 Sultan 28 29 Turki 26 29 Total 36
  • 53. Customer Value Price Surplus Ali 40 29 11 Abdullah 38 29 9 Ahmed 36 29 7 Faisal 34 29 5 Mohammed 32 29 3 Mahmood 30 29 1 Sultan 28 29 Turki 26 29 Total 36
  • 54. Customer Value Price Surplus Ali 40 29 11 Abdullah 38 29 9 Ahmed 36 29 7 Faisal 34 29 5 Mohammed 32 29 3 Mahmood 30 29 1 Sultan 28 29 Turki 26 29 Total 36
  • 55. Customer Value Price Surplus Ali 40 29 11 Abdullah 38 29 9 Ahmed 36 29 7 Faisal 34 29 5 Mohammed 32 29 3 Mahmood 30 29 1 Sultan 28 29 Turki 26 29 Total 36
  • 56. Customer Value Price Surplus Ali 40 29 11 Abdullah 38 29 9 Ahmed 36 29 7 Faisal 34 29 5 Mohammed 32 29 3 Mahmood 30 29 1 Sultan 28 29 Turki 26 29 Total 36
  • 57. Customer Value Price Surplus Ali 40 29 11 Abdullah 38 29 9 Ahmed 36 29 7 Faisal 34 29 5 Mohammed 32 29 3 Mahmood 30 29 1 Sultan 28 29 Turki 26 29 Total 36
  • 58. Customer Value Price Surplus Ali 40 29 11 Abdullah 38 29 9 Ahmed 36 29 7 Faisal 34 29 5 Mohammed 32 29 3 Mahmood 30 29 1 Sultan 28 29 Turki 26 29 Total 36
  • 59. Customer Value Price Surplus Ali 40 29 11 Abdullah 38 29 9 Ahmed 36 29 7 Faisal 34 29 5 Mohammed 32 29 3 Mahmood 30 29 1 Sultan 28 29 Turki 26 29 Total 36
  • 60. Customer Value Price Surplus Ali 40 29 11 Abdullah 38 29 9 Ahmed 36 29 7 Faisal 34 29 5 Mohammed 32 29 3 Mahmood 30 29 1 Sultan 28 29 Turki 26 29 Total 36
  • 61. Customer Value Price Surplus Ali 40 29 11 Abdullah 38 29 9 Ahmed 36 29 7 Faisal 34 29 5 Mohammed 32 29 3 Mahmood 30 29 1 Sultan 28 29 Turki 26 29 Total 36
  • 62. Customer Value Price Surplus Ali 40 29 11 Abdullah 38 29 9 Ahmed 36 29 7 Faisal 34 29 5 Mohammed 32 29 3 Mahmood 30 29 1 Sultan 28 29 Turki 26 29 Total 36
  • 63. Customer Value Price Surplus Ali 40 35 5 Abdullah 38 35 3 Ahmed 36 35 1 Faisal 34 35 Mohammed 32 35 Mahmood 30 35 Sultan 28 35 Turki 26 35 Total 9
  • 64. Customer Value Price Surplus Ali 40 35 5 Abdullah 38 35 3 Ahmed 36 35 1 Faisal 34 35 Mohammed 32 35 Mahmood 30 35 Sultan 28 35 Turki 26 35 Total 9
  • 65. Customer Value Price Surplus Ali 40 35 5 Abdullah 38 35 3 Ahmed 36 35 1 Faisal 34 35 Mohammed 32 35 Mahmood 30 35 Sultan 28 35 Turki 26 35 Total 9
  • 66. Customer Value Price Surplus Ali 40 35 5 Abdullah 38 35 3 Ahmed 36 35 1 Faisal 34 35 Mohammed 32 35 Mahmood 30 35 Sultan 28 35 Turki 26 35 Total 9
  • 67. Customer Value Price Surplus Ali 40 35 5 Abdullah 38 35 3 Ahmed 36 35 1 Faisal 34 35 Mohammed 32 35 Mahmood 30 35 Sultan 28 35 Turki 26 35 Total 9
  • 68. Customer Value Price Surplus Ali 40 35 5 Abdullah 38 35 3 Ahmed 36 35 1 Faisal 34 35 Mohammed 32 35 Mahmood 30 35 Sultan 28 35 Turki 26 35 Total 9
  • 69. Customer Value Price Surplus Ali 40 35 5 Abdullah 38 35 3 Ahmed 36 35 1 Faisal 34 35 Mohammed 32 35 Mahmood 30 35 Sultan 28 35 Turki 26 35 Total 9
  • 70. Customer Value Price Surplus Ali 40 35 5 Abdullah 38 35 3 Ahmed 36 35 1 Faisal 34 35 Mohammed 32 35 Mahmood 30 35 Sultan 28 35 Turki 26 35 Total 9
  • 71. Customer Value Price Surplus Ali 40 35 5 Abdullah 38 35 3 Ahmed 36 35 1 Faisal 34 35 Mohammed 32 35 Mahmood 30 35 Sultan 28 35 Turki 26 35 Total 9
  • 72. Customer Value Price Surplus Ali 40 35 5 Abdullah 38 35 3 Ahmed 36 35 1 Faisal 34 35 Mohammed 32 35 Mahmood 30 35 Sultan 28 35 Turki 26 35 Total 9
  • 73. Customer Value Price Surplus Ali 40 35 5 Abdullah 38 35 3 Ahmed 36 35 1 Faisal 34 35 Mohammed 32 35 Mahmood 30 35 Sultan 28 35 Turki 26 35 Total 9
  • 74. Sellers Riyadh Pizza Market
  • 75. Sellers Dominos Pizza Hut Dr Gale 0 5 10 15 20 25 30 35 40 Riyadh Pizza Market
  • 76. Sellers Dominos Pizza Hut Dr Gale 0 5 10 15 20 25 30 35 40 20 Riyadh Pizza Market
  • 77. Sellers Dominos Pizza Hut Dr Gale 0 5 10 15 20 25 30 35 40 20 25 Riyadh Pizza Market
  • 78. Sellers Dominos Pizza Hut Dr Gale 0 5 10 15 20 25 30 35 40 20 25 30 Riyadh Pizza Market
  • 79. Sellers Dominos Pizza Hut Dr Gale 0 5 10 15 20 25 30 35 40 20 25 30 Price 29 Riyadh Pizza Market
  • 80. Sellers Dominos Pizza Hut Dr Gale 0 5 10 15 20 25 30 35 40 20 25 30 Price 29 Riyadh Pizza Market
  • 81. Sellers Dominos Pizza Hut Dr Gale 0 5 10 15 20 25 30 35 40 20 25 30 Price 29 Riyadh Pizza Market
  • 82. Sellers Dominos Pizza Hut Dr Gale 0 5 10 15 20 25 30 35 40 20 25 30 Price 35 Riyadh Pizza Market
  • 83. Sellers Dominos Pizza Hut Dr Gale 0 5 10 15 20 25 30 35 40 20 25 30 Price 35 Riyadh Pizza Market
  • 84. Sellers Dominos Pizza Hut Dr Gale 0 5 10 15 20 25 30 35 40 20 25 30 Price 35 Riyadh Pizza Market
  • 85. Sellers Dominos Pizza Hut Dr Gale 0 5 10 15 20 25 30 35 40 20 25 30 Price 35 Riyadh Pizza Market
  • 86. 0 10 20 30 40 50 60 70 80 90 100 0 1 2 3 4 5 6 7 8 9 10 Price Quantity SurplusValue
  • 87. 0 10 20 30 40 50 60 70 80 90 100 0 1 2 3 4 5 6 7 8 9 10 Price Quantity SurplusValue Demand
  • 88. 0 10 20 30 40 50 60 70 80 90 100 0 1 2 3 4 5 6 7 8 9 10 Price Quantity SurplusValue Demand Supply
  • 89. 0 10 20 30 40 50 60 70 80 90 100 0 1 2 3 4 5 6 7 8 9 10 Price Quantity SurplusValue Demand Supply
  • 90. 0 10 20 30 40 50 60 70 80 90 100 0 1 2 3 4 5 6 7 8 9 10 Price Quantity SurplusValue Demand Supply
  • 91. 0 10 20 30 40 50 60 70 80 90 100 0 1 2 3 4 5 6 7 8 9 10 Price Quantity SurplusValue Demand Supply
  • 92. 0 10 20 30 40 50 60 70 80 90 100 0 1 2 3 4 5 6 7 8 9 10 Price Quantity SurplusValue Demand Supply
  • 93. 0 10 20 30 40 50 60 70 80 90 100 0 1 2 3 4 5 6 7 8 9 10 Price Quantity SurplusValue Demand Supply
  • 94. 0 10 20 30 40 50 60 70 80 90 100 0 1 2 3 4 5 6 7 8 9 10 Price Quantity SurplusValue Demand Supply
  • 95. 0 10 20 30 40 50 60 70 80 90 100 0 1 2 3 4 5 6 7 8 9 10 Price Quantity SurplusValue Demand Supply Consumer Surplus
  • 96. 0 10 20 30 40 50 60 70 80 90 100 0 1 2 3 4 5 6 7 8 9 10 Price Quantity SurplusValue Demand Supply Consumer Surplus
  • 97. 0 10 20 30 40 50 60 70 80 90 100 0 1 2 3 4 5 6 7 8 9 10 Price Quantity SurplusValue Demand Supply Consumer Surplus Producer Surplus
  • 98. 0 10 20 30 40 50 60 70 80 90 100 0 1 2 3 4 5 6 7 8 9 10 Price Quantity SurplusValue Demand Supply Consumer Surplus Producer Surplus Consumer Surplus Area = H x W ÷ 2 = (100 - 50) x 5 ÷ 2 = 250 ÷ 2 = 125
  • 99. 0 10 20 30 40 50 60 70 80 90 100 0 1 2 3 4 5 6 7 8 9 10 Price Quantity SurplusValue Demand Supply Consumer Surplus Producer Surplus Consumer Surplus Area = H x W ÷ 2 = (100 - 50) x 5 ÷ 2 = 250 ÷ 2 = 125 Producer Surplus Area = H x W ÷ 2 = (50 - 0) x 5 ÷ 2 = 250 ÷ 2 = 125
  • 100. 0 10 20 30 40 50 60 70 80 90 100 0 1 2 3 4 5 6 7 8 9 10 Price Quantity SurplusValue Demand Supply Consumer Surplus Producer Surplus Consumer Surplus Area = H x W ÷ 2 = (100 - 50) x 5 ÷ 2 = 250 ÷ 2 = 125 Producer Surplus Area = H x W ÷ 2 = (50 - 0) x 5 ÷ 2 = 250 ÷ 2 = 125 Total Surplus Area = H x W ÷ 2 = (100 - 0) x 5 ÷ 2 = 500 ÷ 2 = 250
  • 101. 0 10 20 30 40 50 60 70 80 90 100 0 1 2 3 4 5 6 7 8 9 10 Price Quantity SurplusValue
  • 102. 0 10 20 30 40 50 60 70 80 90 100 0 1 2 3 4 5 6 7 8 9 10 Price Quantity SurplusValue Demand
  • 103. 0 10 20 30 40 50 60 70 80 90 100 0 1 2 3 4 5 6 7 8 9 10 Price Quantity SurplusValue Demand Supply
  • 104. 0 10 20 30 40 50 60 70 80 90 100 0 1 2 3 4 5 6 7 8 9 10 Price Quantity SurplusValue Demand Supply
  • 105. 0 10 20 30 40 50 60 70 80 90 100 0 1 2 3 4 5 6 7 8 9 10 Price Quantity SurplusValue Demand Supply
  • 106. 0 10 20 30 40 50 60 70 80 90 100 0 1 2 3 4 5 6 7 8 9 10 Price Quantity SurplusValue Demand Supply
  • 107. 0 10 20 30 40 50 60 70 80 90 100 0 1 2 3 4 5 6 7 8 9 10 Price Quantity SurplusValue Demand Supply
  • 108. 0 10 20 30 40 50 60 70 80 90 100 0 1 2 3 4 5 6 7 8 9 10 Price Quantity SurplusValue Demand Supply Consumer Surplus
  • 109. 0 10 20 30 40 50 60 70 80 90 100 0 1 2 3 4 5 6 7 8 9 10 Price Quantity SurplusValue Demand Supply Consumer Surplus
  • 110. 0 10 20 30 40 50 60 70 80 90 100 0 1 2 3 4 5 6 7 8 9 10 Price Quantity SurplusValue Demand Supply Consumer Surplus Producer Surplus
  • 111. 0 10 20 30 40 50 60 70 80 90 100 0 1 2 3 4 5 6 7 8 9 10 Price Quantity SurplusValue Demand Supply Consumer Surplus Producer Surplus Consumer Surplus Area = H x W ÷ 2 = (100 - 40) x 4 ÷ 2 = 240 ÷ 2 = 120
  • 112. 0 10 20 30 40 50 60 70 80 90 100 0 1 2 3 4 5 6 7 8 9 10 Price Quantity SurplusValue Demand Supply Consumer Surplus Producer Surplus Consumer Surplus Area = H x W ÷ 2 = (100 - 40) x 4 ÷ 2 = 240 ÷ 2 = 120 Producer Surplus Area = H x W ÷ 2 = (40 - 20) x 4 ÷ 2 = 80 ÷ 2 = 40
  • 113. 0 10 20 30 40 50 60 70 80 90 100 0 1 2 3 4 5 6 7 8 9 10 Price Quantity SurplusValue Demand Supply Consumer Surplus Producer Surplus Consumer Surplus Area = H x W ÷ 2 = (100 - 40) x 4 ÷ 2 = 240 ÷ 2 = 120 Producer Surplus Area = H x W ÷ 2 = (40 - 20) x 4 ÷ 2 = 80 ÷ 2 = 40 Total Surplus Area = H x W ÷ 2 = (100 - 20) x 4 ÷ 2 = 320 ÷ 2 = 160
  • 114. 0 10 20 30 40 50 60 70 80 90 100 0 1 2 3 4 5 6 7 8 9 10 Price Quantity SurplusValue Demand Supply Consumer Surplus Producer Surplus Consumer Surplus Area = H x W ÷ 2 = (100 - 40) x 4 ÷ 2 = 240 ÷ 2 = 120 Producer Surplus Area = H x W ÷ 2 = (40 - 20) x 4 ÷ 2 = 80 ÷ 2 = 40 Total Surplus Area = H x W ÷ 2 = (100 - 20) x 4 ÷ 2 = 320 ÷ 2 = 160
  • 115. 0 10 20 30 40 50 60 70 80 90 100 0 1 2 3 4 5 6 7 8 9 10 Price Quantity SurplusValue Demand Supply Consumer Surplus Producer Surplus Consumer Surplus Area = H x W ÷ 2 = (100 - 40) x 4 ÷ 2 = 240 ÷ 2 = 120 Producer Surplus Area = H x W ÷ 2 = (40 - 20) x 4 ÷ 2 = 80 ÷ 2 = 40 Total Surplus Area = H x W ÷ 2 = (100 - 20) x 4 ÷ 2 = 320 ÷ 2 = 160
  • 116. 0 10 20 30 40 50 60 70 80 90 100 0 1 2 3 4 5 6 7 8 9 10 Price Quantity Government Minimum Price
  • 117. 0 10 20 30 40 50 60 70 80 90 100 0 1 2 3 4 5 6 7 8 9 10 Price Quantity Government Minimum Price Demand
  • 118. 0 10 20 30 40 50 60 70 80 90 100 0 1 2 3 4 5 6 7 8 9 10 Price Quantity Government Minimum Price Demand Supply
  • 119. 0 10 20 30 40 50 60 70 80 90 100 0 1 2 3 4 5 6 7 8 9 10 Price Quantity Government Minimum Price Demand Supply
  • 120. 0 10 20 30 40 50 60 70 80 90 100 0 1 2 3 4 5 6 7 8 9 10 Price Quantity Government Minimum Price Demand Supply
  • 121. 0 10 20 30 40 50 60 70 80 90 100 0 1 2 3 4 5 6 7 8 9 10 Price Quantity Government Minimum Price Demand Supply
  • 122. 0 10 20 30 40 50 60 70 80 90 100 0 1 2 3 4 5 6 7 8 9 10 Price Quantity Government Minimum Price Demand Supply
  • 123. 0 10 20 30 40 50 60 70 80 90 100 0 1 2 3 4 5 6 7 8 9 10 Price Quantity Government Minimum Price Demand Supply
  • 124. 0 10 20 30 40 50 60 70 80 90 100 0 1 2 3 4 5 6 7 8 9 10 Price Quantity Government Minimum Price Demand Supply
  • 125. 0 10 20 30 40 50 60 70 80 90 100 0 1 2 3 4 5 6 7 8 9 10 Price Quantity Government Minimum Price Demand Supply Consumer Surplus
  • 126. 0 10 20 30 40 50 60 70 80 90 100 0 1 2 3 4 5 6 7 8 9 10 Price Quantity Government Minimum Price Demand Supply Consumer Surplus
  • 127. 0 10 20 30 40 50 60 70 80 90 100 0 1 2 3 4 5 6 7 8 9 10 Price Quantity Government Minimum Price Demand Supply Consumer Surplus Producer Surplus
  • 128. 0 10 20 30 40 50 60 70 80 90 100 0 1 2 3 4 5 6 7 8 9 10 Price Quantity Government Minimum Price Demand Supply Consumer Surplus Producer Surplus Government Price Minimum
  • 129. 0 10 20 30 40 50 60 70 80 90 100 0 1 2 3 4 5 6 7 8 9 10 Price Quantity Government Minimum Price Demand Supply Consumer Surplus Producer Surplus Government Price Minimum
  • 130. 0 10 20 30 40 50 60 70 80 90 100 0 1 2 3 4 5 6 7 8 9 10 Price Quantity Government Minimum Price Demand Supply Consumer Surplus Producer Surplus Government Price Minimum
  • 131. 0 10 20 30 40 50 60 70 80 90 100 0 1 2 3 4 5 6 7 8 9 10 Price Quantity Government Minimum Price Demand Supply Consumer Surplus Producer Surplus Government Price Minimum Loss
  • 132. 0 10 20 30 40 50 60 70 80 90 100 0 1 2 3 4 5 6 7 8 9 10 Price Quantity Government Minimum Price Demand Supply Consumer Surplus Producer Surplus Government Price Minimum Loss Loss
  • 133. 0 10 20 30 40 50 60 70 80 90 100 0 1 2 3 4 5 6 7 8 9 10 Price Quantity Government Minimum Price Demand Supply Consumer Surplus Producer Surplus Government Price Minimum Loss Loss
  • 134. 0 10 20 30 40 50 60 70 80 90 100 0 1 2 3 4 5 6 7 8 9 10 Price Quantity Government Minimum Price Demand Supply Consumer Surplus Producer Surplus Government Price Minimum Loss Loss
  • 135. 0 10 20 30 40 50 60 70 80 90 100 0 1 2 3 4 5 6 7 8 9 10 Price Quantity Government Minimum Price Demand Supply Consumer Surplus Producer Surplus Government Price Minimum Loss Loss
  • 136. 0 10 20 30 40 50 60 70 80 90 100 0 1 2 3 4 5 6 7 8 9 10 Price Quantity Government Minimum Price Demand Supply Consumer Surplus Producer Surplus Government Price Minimum Loss Loss
  • 137. 0 10 20 30 40 50 60 70 80 90 100 0 1 2 3 4 5 6 7 8 9 10 Price Quantity Government Minimum Price Demand Supply Consumer Surplus Producer Surplus Government Price Minimum Consumer Loss Producer Gain Loss Loss
  • 138. 0 10 20 30 40 50 60 70 80 90 100 0 1 2 3 4 5 6 7 8 9 10 Price Quantity Government Minimum Price Demand Supply Consumer Surplus Producer Surplus Consumer Surplus Area Before = 125 After = 45 Change = Lose 80 Government Price Minimum Consumer Loss Producer Gain Loss Loss
  • 139. 0 10 20 30 40 50 60 70 80 90 100 0 1 2 3 4 5 6 7 8 9 10 Price Quantity Government Minimum Price Demand Supply Consumer Surplus Producer Surplus Consumer Surplus Area Before = 125 After = 45 Change = Lose 80 Producer Surplus Area Before = 125 After = 165 Change = Gain 40 Government Price Minimum Consumer Loss Producer Gain Loss Loss
  • 140. 0 10 20 30 40 50 60 70 80 90 100 0 1 2 3 4 5 6 7 8 9 10 Price Quantity Government Minimum Price Demand Supply Consumer Surplus Producer Surplus Consumer Surplus Area Before = 125 After = 45 Change = Lose 80 Producer Surplus Area Before = 125 After = 165 Change = Gain 40 Total Surplus Area Before = 250 After = 210 Deadweight Loss = 40 Government Price Minimum Consumer Loss Producer Gain Loss Loss
  • 141. 0 10 20 30 40 50 60 70 80 90 100 0 1 2 3 4 5 6 7 8 9 10 Price Quantity Government Maximum Price
  • 142. 0 10 20 30 40 50 60 70 80 90 100 0 1 2 3 4 5 6 7 8 9 10 Price Quantity Demand Government Maximum Price
  • 143. 0 10 20 30 40 50 60 70 80 90 100 0 1 2 3 4 5 6 7 8 9 10 Price Quantity Demand Supply Government Maximum Price
  • 144. 0 10 20 30 40 50 60 70 80 90 100 0 1 2 3 4 5 6 7 8 9 10 Price Quantity Demand Supply Government Maximum Price
  • 145. 0 10 20 30 40 50 60 70 80 90 100 0 1 2 3 4 5 6 7 8 9 10 Price Quantity Demand Supply Government Maximum Price
  • 146. 0 10 20 30 40 50 60 70 80 90 100 0 1 2 3 4 5 6 7 8 9 10 Price Quantity Demand Supply Government Maximum Price
  • 147. 0 10 20 30 40 50 60 70 80 90 100 0 1 2 3 4 5 6 7 8 9 10 Price Quantity Demand Supply Government Maximum Price
  • 148. 0 10 20 30 40 50 60 70 80 90 100 0 1 2 3 4 5 6 7 8 9 10 Price Quantity Demand Supply Government Maximum Price
  • 149. 0 10 20 30 40 50 60 70 80 90 100 0 1 2 3 4 5 6 7 8 9 10 Price Quantity Demand Supply Government Maximum Price
  • 150. 0 10 20 30 40 50 60 70 80 90 100 0 1 2 3 4 5 6 7 8 9 10 Price Quantity Demand SupplyConsumer Surplus Government Maximum Price
  • 151. 0 10 20 30 40 50 60 70 80 90 100 0 1 2 3 4 5 6 7 8 9 10 Price Quantity Demand SupplyConsumer Surplus Government Maximum Price
  • 152. 0 10 20 30 40 50 60 70 80 90 100 0 1 2 3 4 5 6 7 8 9 10 Price Quantity Demand SupplyConsumer Surplus Producer Surplus Government Maximum Price
  • 153. 0 10 20 30 40 50 60 70 80 90 100 0 1 2 3 4 5 6 7 8 9 10 Price Quantity Demand SupplyConsumer Surplus Producer Surplus Government Price Maximum Government Maximum Price
  • 154. 0 10 20 30 40 50 60 70 80 90 100 0 1 2 3 4 5 6 7 8 9 10 Price Quantity Demand SupplyConsumer Surplus Producer Surplus Government Price Maximum Government Maximum Price
  • 155. 0 10 20 30 40 50 60 70 80 90 100 0 1 2 3 4 5 6 7 8 9 10 Price Quantity Demand SupplyConsumer Surplus Producer Surplus Government Price Maximum Government Maximum Price
  • 156. 0 10 20 30 40 50 60 70 80 90 100 0 1 2 3 4 5 6 7 8 9 10 Price Quantity Demand SupplyConsumer Surplus Producer Surplus Government Price Maximum Government Maximum Price
  • 157. 0 10 20 30 40 50 60 70 80 90 100 0 1 2 3 4 5 6 7 8 9 10 Price Quantity Demand SupplyConsumer Surplus Producer Surplus Government Price Maximum Loss Government Maximum Price
  • 158. 0 10 20 30 40 50 60 70 80 90 100 0 1 2 3 4 5 6 7 8 9 10 Price Quantity Demand SupplyConsumer Surplus Producer Surplus Government Price Maximum Loss Loss Government Maximum Price
  • 159. 0 10 20 30 40 50 60 70 80 90 100 0 1 2 3 4 5 6 7 8 9 10 Price Quantity Demand SupplyConsumer Surplus Producer Surplus Government Price Maximum Loss Loss Government Maximum Price
  • 160. 0 10 20 30 40 50 60 70 80 90 100 0 1 2 3 4 5 6 7 8 9 10 Price Quantity Demand SupplyConsumer Surplus Producer Surplus Government Price Maximum Loss Loss Government Maximum Price
  • 161. 0 10 20 30 40 50 60 70 80 90 100 0 1 2 3 4 5 6 7 8 9 10 Price Quantity Demand SupplyConsumer Surplus Producer Surplus Government Price Maximum Loss Loss Government Maximum Price
  • 162. 0 10 20 30 40 50 60 70 80 90 100 0 1 2 3 4 5 6 7 8 9 10 Price Quantity Demand SupplyConsumer Surplus Producer Surplus Government Price Maximum Consumer Gain Producer Loss Loss Loss Government Maximum Price
  • 163. 0 10 20 30 40 50 60 70 80 90 100 0 1 2 3 4 5 6 7 8 9 10 Price Quantity Demand SupplyConsumer Surplus Producer Surplus Consumer Surplus Area Before = 125 After = 140 Change = Gain 15 Government Price Maximum Consumer Gain Producer Loss Loss Loss Government Maximum Price
  • 164. 0 10 20 30 40 50 60 70 80 90 100 0 1 2 3 4 5 6 7 8 9 10 Price Quantity Demand SupplyConsumer Surplus Producer Surplus Consumer Surplus Area Before = 125 After = 140 Change = Gain 15 Producer Surplus Area Before = 125 After = 20 Change = Loss 105 Government Price Maximum Consumer Gain Producer Loss Loss Loss Government Maximum Price
  • 165. 0 10 20 30 40 50 60 70 80 90 100 0 1 2 3 4 5 6 7 8 9 10 Price Quantity Demand SupplyConsumer Surplus Producer Surplus Consumer Surplus Area Before = 125 After = 140 Change = Gain 15 Producer Surplus Area Before = 125 After = 20 Change = Loss 105 Total Surplus Area Before = 250 After = 160 Deadweight Loss = 90 Government Price Maximum Consumer Gain Producer Loss Loss Loss Government Maximum Price
  • 166. 0 10 20 30 40 50 60 70 80 90 100 0 1 2 3 4 5 6 7 8 9 10 Price Quantity Supply Shift Demand Supply1
  • 167. 0 10 20 30 40 50 60 70 80 90 100 0 1 2 3 4 5 6 7 8 9 10 Price Quantity Supply Shift Demand Consumer Surplus Supply1
  • 168. 0 10 20 30 40 50 60 70 80 90 100 0 1 2 3 4 5 6 7 8 9 10 Price Quantity Supply Shift Demand Producer Surplus Consumer Surplus Supply1
  • 169. 0 10 20 30 40 50 60 70 80 90 100 0 1 2 3 4 5 6 7 8 9 10 Price Quantity Supply Shift Demand Producer Surplus Consumer Surplus Supply2 Supply1
  • 170. 0 10 20 30 40 50 60 70 80 90 100 0 1 2 3 4 5 6 7 8 9 10 Price Quantity Supply Shift Demand Producer Surplus Consumer Surplus Supply2 Supply1
  • 171. 0 10 20 30 40 50 60 70 80 90 100 0 1 2 3 4 5 6 7 8 9 10 Price Quantity Supply Shift Demand Supply2 Supply1
  • 172. 0 10 20 30 40 50 60 70 80 90 100 0 1 2 3 4 5 6 7 8 9 10 Price Quantity Supply Shift Demand Consumer Surplus Supply2 Supply1
  • 173. 0 10 20 30 40 50 60 70 80 90 100 0 1 2 3 4 5 6 7 8 9 10 Price Quantity Supply Shift Demand Consumer Surplus Producer Surplus Supply2 Supply1
  • 174. 0 10 20 30 40 50 60 70 80 90 100 0 1 2 3 4 5 6 7 8 9 10 Price Quantity Supply Shift Demand Consumer Surplus Producer Surplus Total Surplus Before = 250 After = 90 Change = Loss 160 Supply2 Supply1
  • 175. 0 10 20 30 40 50 60 70 80 90 100 0 1 2 3 4 5 6 7 8 9 10 Price Quantity Supply Shift Demand Consumer Surplus Producer Surplus Total Surplus Before = 250 After = 90 Change = Loss 160 Supply2 Supply1
  • 176. 0 10 20 30 40 50 60 70 80 90 100 0 1 2 3 4 5 6 7 8 9 10 Price Quantity Supply Shift Demand Consumer Surplus Producer Surplus Total Surplus Before = 250 After = 90 Change = Loss 160 Supply2 Supply1