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101 lecture 7

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101 lecture 7

  1. 1. Next Exam Exam 3 October 24th Chapter 7, 8, 9
  2. 2. Microeconomics Lecture 7 Consumers, Producers, and the Efficiency of Markets
  3. 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. 4. Economic Surplus Consumer - Buyer Producer - Seller
  5. 5. Value Versus Price
  6. 6. Sellers value less than price Buyers value more than price
  7. 7. Always TwoValues in a trade
  8. 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. 9. 0
  10. 10. 0 100
  11. 11. BuyerValue 60 0 100
  12. 12. BuyerValue 60 SellerValue 40 0 100
  13. 13. BuyerValue 60 SellerValue 40 0 100
  14. 14. BuyerValue 60 SellerValue 40 Value Range 0 100
  15. 15. BuyerValue 60 SellerValue 40 Value RangePrice 0 100
  16. 16. BuyerValue 60 SellerValue 40 Value Range Price 0 100
  17. 17. BuyerValue 60 SellerValue 40 Value Range Price 0 100
  18. 18. BuyerValue 60 SellerValue 40 Value RangePrice 0 100
  19. 19. BuyerValue 60 SellerValue 40 Value RangePrice Price between 40 and 60 will get sold 0 100
  20. 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. 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. 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. 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. 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. 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. 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. 27. Invisible Hand
  28. 28. Invisible Hand Buyer with highest value will be matched to the Seller with the lowest value
  29. 29. SurplusValue is equal to the difference between value and price
  30. 30. Economic Surplus is equal to seller surplus plus buyer surplus
  31. 31. Buyers Riyadh Pizza Market
  32. 32. Buyers Ali Abdullah Ahmed Faisal Mohammed Mahmood Sultan Turki 0 5 10 15 20 25 30 35 40 Riyadh Pizza Market
  33. 33. Buyers Ali Abdullah Ahmed Faisal Mohammed Mahmood Sultan Turki 0 5 10 15 20 25 30 35 40 40 Riyadh Pizza Market
  34. 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. 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. 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. 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. 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. 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. 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. 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. 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. 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. 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. 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. 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. 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. 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. 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. 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. 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. 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. 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. 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. 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. 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. 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. 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. 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. 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. 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. 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. 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. 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. 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. 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. 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. 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. 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. 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. 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. 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. 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. 74. Sellers Riyadh Pizza Market
  75. 75. Sellers Dominos Pizza Hut Dr Gale 0 5 10 15 20 25 30 35 40 Riyadh Pizza Market
  76. 76. Sellers Dominos Pizza Hut Dr Gale 0 5 10 15 20 25 30 35 40 20 Riyadh Pizza Market
  77. 77. Sellers Dominos Pizza Hut Dr Gale 0 5 10 15 20 25 30 35 40 20 25 Riyadh Pizza Market
  78. 78. Sellers Dominos Pizza Hut Dr Gale 0 5 10 15 20 25 30 35 40 20 25 30 Riyadh Pizza Market
  79. 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. 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. 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. 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. 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. 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. 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. 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. 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. 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. 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. 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. 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. 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. 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. 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. 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. 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. 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. 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. 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. 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. 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. 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. 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. 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. 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. 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. 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. 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. 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. 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. 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. 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. 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. 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. 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. 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. 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. 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. 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. 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. 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. 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. 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. 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. 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. 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. 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. 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. 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. 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. 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. 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. 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. 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. 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. 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. 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. 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. 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. 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. 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. 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. 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. 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. 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. 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. 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. 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. 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. 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. 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. 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. 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. 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. 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. 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. 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. 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. 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. 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. 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. 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. 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. 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. 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. 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. 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. 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. 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. 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. 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. 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. 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. 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. 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. 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

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