Exam 3 review

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Exam 3 review

  1. 1. Microeconomics Exam 3 Review
  2. 2. Rules
  3. 3. Rules pencil calculator right class on time
  4. 4. Chapters
  5. 5. Chapters 7, 8, 9
  6. 6. Surplus Value Price 100 90 80 70 60 50 40 30 20 10 0 0 1 2 3 4 5 6 7 8 9 10 Quantity
  7. 7. Surplus Value Price 100 90 80 70 60 50 40 30 Demand 20 10 0 0 1 2 3 4 5 6 7 8 9 10 Quantity
  8. 8. Surplus Value Price 100 90 80 Supply 70 60 50 40 30 Demand 20 10 0 0 1 2 3 4 5 6 7 8 9 10 Quantity
  9. 9. Surplus Value Price 100 90 80 Supply 70 60 50 40 30 Demand 20 10 0 0 1 2 3 4 5 6 7 8 9 10 Quantity
  10. 10. Surplus Value Price 100 90 80 Supply 70 60 50 40 30 Demand 20 10 0 0 1 2 3 4 5 6 7 8 9 10 Quantity
  11. 11. Surplus Value Price 100 90 80 Supply 70 60 50 40 30 Demand 20 10 0 0 1 2 3 4 5 6 7 8 9 10 Quantity
  12. 12. Surplus Value Price 100 90 80 Supply 70 60 50 40 30 Demand 20 10 0 0 1 2 3 4 5 6 7 8 9 10 Quantity
  13. 13. Surplus Value Price 100 90 80 Supply 70 60 50 40 30 Demand 20 10 0 0 1 2 3 4 5 6 7 8 9 10 Quantity
  14. 14. Surplus Value Price 100 90 80 Supply 70 60 50 40 30 Demand 20 10 0 0 1 2 3 4 5 6 7 8 9 10 Quantity
  15. 15. Surplus Value Price 100 90 80 Supply 70 Consumer Surplus 60 50 40 30 Demand 20 10 0 0 1 2 3 4 5 6 7 8 9 10 Quantity
  16. 16. Surplus Value Price 100 90 80 Supply 70 Consumer Surplus 60 50 40 30 Demand 20 10 0 0 1 2 3 4 5 6 7 8 9 10 Quantity
  17. 17. Surplus Value Price 100 90 80 Supply 70 Consumer Surplus 60 50 40 Producer Surplus 30 Demand 20 10 0 0 1 2 3 4 5 6 7 8 9 10 Quantity
  18. 18. Surplus Value Price 100 90 80 70 60 50 40 30 20 10 0 0 1 2 3 4 5 6 7 8 9 10 Quantity
  19. 19. Surplus Value Price 100 90 80 70 60 50 40 30 Demand 20 10 0 0 1 2 3 4 5 6 7 8 9 10 Quantity
  20. 20. Surplus Value Price 100 90 80 Supply 70 60 50 40 30 Demand 20 10 0 0 1 2 3 4 5 6 7 8 9 10 Quantity
  21. 21. Surplus Value Price 100 90 80 Supply 70 60 50 40 30 Demand 20 10 0 0 1 2 3 4 5 6 7 8 9 10 Quantity
  22. 22. Surplus Value Price 100 90 80 Supply 70 60 50 40 30 Demand 20 10 0 0 1 2 3 4 5 6 7 8 9 10 Quantity
  23. 23. Surplus Value Price 100 90 80 Supply 70 60 50 40 30 Demand 20 10 0 0 1 2 3 4 5 6 7 8 9 10 Quantity
  24. 24. Surplus Value Price 100 90 80 Supply 70 60 50 40 30 Demand 20 10 0 0 1 2 3 4 5 6 7 8 9 10 Quantity
  25. 25. Surplus Value Price 100 90 80 Supply 70 60 50 40 30 Demand 20 10 0 0 1 2 3 4 5 6 7 8 9 10 Quantity
  26. 26. Surplus Value Price 100 90 80 Supply 70 Consumer Surplus 60 50 40 30 Demand 20 10 0 0 1 2 3 4 5 6 7 8 9 10 Quantity
  27. 27. Surplus Value Price 100 90 80 Supply 70 Consumer Surplus 60 50 40 30 Demand 20 10 0 0 1 2 3 4 5 6 7 8 9 10 Quantity
  28. 28. Surplus Value Price 100 90 80 Supply 70 Consumer Surplus 60 50 40 Producer Surplus 30 Demand 20 10 0 0 1 2 3 4 5 6 7 8 9 10 Quantity
  29. 29. Surplus Value Price 100 90 80 Supply 70 Consumer Surplus 60 50 40 Producer Surplus 30 Demand 20 10 0 0 1 2 3 4 5 6 7 8 9 10 Quantity
  30. 30. Surplus Value Price 100 90 80 Supply 70 Consumer Surplus 60 50 40 Producer Surplus 30 Demand 20 10 0 0 1 2 3 4 5 6 7 8 9 10 Quantity
  31. 31. Surplus Value Price 100 90 80 Supply 70 Consumer Surplus 60 50 40 Producer Surplus 30 Demand 20 10 0 0 1 2 3 4 5 6 7 8 9 10 Quantity
  32. 32. Surplus Value Price 100 90 80 Supply 70 Consumer Surplus 60 50 40 Producer Surplus 30 Demand 20 10 0 0 Surplus 250 1 2 3 4 5 6 7 8 9 10 Quantity
  33. 33. Surplus Value Price 100 90 80 Supply 70 Consumer Surplus 60 50 40 Producer Surplus 30 Demand 20 10 0 0 1 2 Surplus 250 Less excess production 40 3 4 5 6 7 8 9 10 Quantity
  34. 34. Surplus Value Price 100 90 80 Supply 70 Consumer Surplus 60 50 40 Producer Surplus 30 Demand 20 10 0 0 1 2 Surplus 250 Less excess production 40 Net Surplus 210 3 4 5 6 7 8 9 10 Quantity
  35. 35. Surplus Value Price 100 90 80 70 60 50 40 30 Consumer Surplus Supply Producer Surplus 20 10 0 Demand 0 1 2 3 4 5 6 7 8 9 10 Quantity
  36. 36. Surplus Value Price 100 90 80 70 60 50 40 30 20 10 0 0 1 2 3 4 5 6 7 8 9 10 Quantity
  37. 37. Surplus Value Price 100 90 Supply 80 70 60 50 40 30 20 10 0 0 1 2 3 4 5 6 7 8 9 10 Quantity
  38. 38. Surplus Value Price 100 90 Supply 80 70 60 50 40 30 Demand 20 10 0 0 1 2 3 4 5 6 7 8 9 10 Quantity
  39. 39. Surplus Value Price 100 90 Supply 80 70 60 50 40 30 Demand 20 10 0 0 1 2 3 4 5 6 7 8 9 10 Quantity
  40. 40. Surplus Value Price 100 90 Supply 80 70 60 50 40 30 Demand 20 10 0 0 1 2 3 4 5 6 7 8 9 10 Quantity
  41. 41. Surplus Value Price 100 90 Supply 80 70 60 50 40 30 Demand 20 10 0 0 1 2 3 4 5 6 7 8 9 10 Quantity
  42. 42. Surplus Value Price 100 90 Supply 80 70 60 50 40 30 Demand 20 10 0 0 1 2 3 4 5 6 7 8 9 10 Quantity
  43. 43. Surplus Value Price 100 90 Supply 80 70 60 50 40 30 Demand 20 10 0 0 1 2 3 4 5 6 7 8 9 10 Quantity
  44. 44. Surplus Value Price 100 90 Supply 80 70 60 50 40 30 Demand 20 10 0 0 1 Cost 70 x 3 = 210 2 3 4 5 6 7 8 9 10 Quantity
  45. 45. Surplus Value Price 100 90 Supply 80 70 60 50 40 30 Demand 20 10 0 0 1 Cost 70 x 3 = 210 Revenue 20 x 3 = 60 2 3 4 5 6 7 8 9 10 Quantity
  46. 46. Surplus Value Price 100 90 Supply 80 70 60 50 40 30 Demand 20 10 0 0 1 Cost 70 x 3 = 210 Revenue 20 x 3 = 60 Loss 210 - 60 = 150 2 3 4 5 6 7 8 9 10 Quantity
  47. 47. Surplus Value Price 100 90 Supply 80 70 60 50 40 30 Demand 20 10 0 0 1 Cost 70 x 3 = 210 Revenue 20 x 3 = 60 Loss 210 - 60 = 150 2 3 4 5 6 7 Producers Lose Money 8 9 10 Quantity
  48. 48. Surplus Value Price 100 90 Supply 80 70 60 50 40 30 Demand 20 10 0 0 1 Cost 70 x 3 = 210 Revenue 20 x 3 = 60 Loss 210 - 60 = 150 2 3 4 5 6 7 Producers Lose Money No surplus 8 9 10 Quantity
  49. 49. Surplus Value Price 100 90 Supply 80 70 60 50 40 30 Demand 20 10 0 0 1 Cost 70 x 3 = 210 Revenue 20 x 3 = 60 Loss 210 - 60 = 150 2 3 4 5 6 7 Producers Lose Money No surplus Negative surplus 8 9 10 Quantity
  50. 50. Government Minimum Price Price 100 90 80 Consumer Surplus Supply 70 60 50 40 Producer Surplus 30 Demand 20 10 0 0 1 2 3 4 5 6 7 8 9 10 Quantity
  51. 51. Government Minimum Price Price 100 90 Government Price Minimum 80 Consumer Surplus Supply 70 60 50 40 Producer Surplus 30 Demand 20 10 0 0 1 2 3 4 5 6 7 8 9 10 Quantity
  52. 52. Government Minimum Price Price 100 90 Government Price Minimum 80 Consumer Surplus Supply 70 60 50 40 Producer Surplus 30 Demand 20 10 0 0 1 2 3 4 5 6 7 8 9 10 Quantity
  53. 53. Government Minimum Price Price 100 90 Government Price Minimum 80 Consumer Surplus Supply 70 60 50 40 Producer Surplus 30 Demand 20 10 0 0 1 2 3 4 5 6 7 8 9 10 Quantity
  54. 54. Government Minimum Price Price 100 90 Government Price Minimum 80 Consumer Surplus Supply 70 60 Loss 50 40 Producer Surplus 30 Demand 20 10 0 0 1 2 3 4 5 6 7 8 9 10 Quantity
  55. 55. Government Minimum Price Price 100 90 Government Price Minimum 80 Consumer Surplus Supply 70 60 Loss 50 40 Loss Producer Surplus 30 Demand 20 10 0 0 1 2 3 4 5 6 7 8 9 10 Quantity
  56. 56. Government Minimum Price Price 100 90 Government Price Minimum 80 Consumer Surplus Supply 70 60 Loss 50 40 Loss Producer Surplus 30 Demand 20 10 0 0 1 2 3 4 5 6 7 8 9 10 Quantity
  57. 57. Government Minimum Price Price 100 90 Government Price Minimum 80 Consumer Surplus Supply 70 60 Loss 50 40 Loss Producer Surplus 30 Demand 20 10 0 0 1 2 3 4 5 6 7 8 9 10 Quantity
  58. 58. Government Minimum Price Price 100 90 Government Price Minimum 80 Consumer Surplus Supply 70 60 Loss 50 40 Loss Producer Surplus 30 Demand 20 10 0 0 1 2 3 4 5 6 7 8 9 10 Quantity
  59. 59. Government Minimum Price Price 100 90 Government Price Minimum 80 Consumer Surplus Supply 70 60 Loss 50 40 Loss Producer Surplus 30 Demand 20 10 0 0 1 2 3 4 5 6 7 8 9 10 Quantity
  60. 60. Government Minimum Price Price 100 90 Government Price Minimum 80 Consumer Surplus Supply 70 Consumer Loss Producer Gain 60 50 40 Loss Loss Producer Surplus 30 Demand 20 10 0 0 1 2 3 4 5 6 7 8 9 10 Quantity
  61. 61. Government Maximum Price Price 100 90 80 70 60 50 40 30 20 10 0 0 1 2 3 4 5 6 7 8 9 10 Quantity
  62. 62. Government Maximum Price Price 100 90 80 70 60 50 40 30 Demand 20 10 0 0 1 2 3 4 5 6 7 8 9 10 Quantity
  63. 63. Government Maximum Price Price 100 90 80 Supply 70 60 50 40 30 Demand 20 10 0 0 1 2 3 4 5 6 7 8 9 10 Quantity
  64. 64. Government Maximum Price Price 100 90 80 Supply 70 60 50 40 30 Demand 20 10 0 0 1 2 3 4 5 6 7 8 9 10 Quantity
  65. 65. Government Maximum Price Price 100 90 80 Supply 70 60 50 40 30 Demand 20 10 0 0 1 2 3 4 5 6 7 8 9 10 Quantity
  66. 66. Government Maximum Price Price 100 90 80 Supply 70 60 50 40 30 Demand 20 10 0 0 1 2 3 4 5 6 7 8 9 10 Quantity
  67. 67. Government Maximum Price Price 100 90 80 Supply 70 60 50 40 30 Demand 20 10 0 0 1 2 3 4 5 6 7 8 9 10 Quantity
  68. 68. Government Maximum Price Price 100 90 80 Supply 70 60 50 40 30 Demand 20 10 0 0 1 2 3 4 5 6 7 8 9 10 Quantity
  69. 69. Government Maximum Price Price 100 90 80 Supply 70 60 50 40 30 Demand 20 10 0 0 1 2 3 4 5 6 7 8 9 10 Quantity
  70. 70. Government Maximum Price Price 100 90 80 Supply Consumer Surplus 70 60 50 40 30 Demand 20 10 0 0 1 2 3 4 5 6 7 8 9 10 Quantity
  71. 71. Government Maximum Price Price 100 90 80 Supply Consumer Surplus 70 60 50 40 30 Demand 20 10 0 0 1 2 3 4 5 6 7 8 9 10 Quantity
  72. 72. Government Maximum Price Price 100 90 80 Supply Consumer Surplus 70 60 50 40 30 20 10 0 Demand Producer Surplus 0 1 2 3 4 5 6 7 8 9 10 Quantity
  73. 73. Government Maximum Price Price 100 90 80 Supply Consumer Surplus 70 60 50 40 Government Price Maximum 30 20 10 0 Demand Producer Surplus 0 1 2 3 4 5 6 7 8 9 10 Quantity
  74. 74. Government Maximum Price Price 100 90 80 Supply Consumer Surplus 70 60 50 40 Government Price Maximum 30 20 10 0 Demand Producer Surplus 0 1 2 3 4 5 6 7 8 9 10 Quantity
  75. 75. Government Maximum Price Price 100 90 80 Supply Consumer Surplus 70 60 50 40 Government Price Maximum 30 20 10 0 Demand Producer Surplus 0 1 2 3 4 5 6 7 8 9 10 Quantity
  76. 76. Government Maximum Price Price 100 90 80 Supply Consumer Surplus 70 60 50 40 Government Price Maximum 30 20 10 0 Demand Producer Surplus 0 1 2 3 4 5 6 7 8 9 10 Quantity
  77. 77. Government Maximum Price Price 100 90 80 Supply Consumer Surplus 70 60 Loss 50 40 Government Price Maximum 30 20 10 0 Demand Producer Surplus 0 1 2 3 4 5 6 7 8 9 10 Quantity
  78. 78. Government Maximum Price Price 100 90 80 Supply Consumer Surplus 70 60 Loss 50 Loss 40 Government Price Maximum 30 20 10 0 Demand Producer Surplus 0 1 2 3 4 5 6 7 8 9 10 Quantity
  79. 79. Government Maximum Price Price 100 90 80 Supply Consumer Surplus 70 60 Loss 50 Loss 40 Government Price Maximum 30 20 10 0 Demand Producer Surplus 0 1 2 3 4 5 6 7 8 9 10 Quantity
  80. 80. Government Maximum Price Price 100 90 80 Supply Consumer Surplus 70 60 Loss 50 Loss 40 Government Price Maximum 30 20 10 0 Demand Producer Surplus 0 1 2 3 4 5 6 7 8 9 10 Quantity
  81. 81. Government Maximum Price Price 100 90 80 Supply Consumer Surplus 70 60 Loss 50 Loss 40 Government Price Maximum 30 20 10 0 Demand Producer Surplus 0 1 2 3 4 5 6 7 8 9 10 Quantity
  82. 82. Government Maximum Price Price 100 90 80 Supply Consumer Surplus 70 60 Loss 50 40 Government Price Maximum 30 20 10 0 Loss Consumer Gain Producer Loss Demand Producer Surplus 0 1 2 3 4 5 6 7 8 9 10 Quantity
  83. 83. Tax Analysis 100 Supply with no tax 90 80 70 60 50 40 30 20 10 0 Demand 0 1 2 3 4 5 6 7 8 9 10
  84. 84. Tax Analysis 100 Supply with no tax 90 80 Buyer Surplus 70 60 50 40 30 20 10 0 Demand 0 1 2 3 4 5 6 7 8 9 10
  85. 85. Tax Analysis 100 Supply with no tax 90 80 Buyer Surplus 70 60 50 40 Seller Surplus 30 20 10 0 Demand 0 1 2 3 4 5 6 7 8 9 10
  86. 86. Tax Analysis 100 Supply with no tax 90 80 70 60 50 40 30 20 10 0 Demand 0 1 2 3 4 5 6 7 8 9 10 Tax on Seller with shift Supply curve up by the amount of the tax
  87. 87. Tax Analysis 100 Supply with no tax 90 80 70 60 Tax of 40 SAR 50 40 30 20 10 0 Demand 0 1 2 3 4 5 6 7 8 9 10 Tax on Seller with shift Supply curve up by the amount of the tax
  88. 88. Tax Analysis 100 Supply with no tax 90 40 80 70 60 40 50 Tax of 40 SAR 40 30 40 20 10 0 Demand 0 1 2 3 4 5 6 7 8 9 10 Tax on Seller with shift Supply curve up by the amount of the tax
  89. 89. Tax Analysis 100 Supply with 40 SAR tax 90 Supply with no tax 40 80 70 60 40 50 Tax of 40 SAR 40 30 40 20 10 0 Demand 0 1 2 3 4 5 6 7 8 9 10 Tax on Seller with shift Supply curve up by the amount of the tax
  90. 90. Tax Analysis 100 Supply with 40 SAR tax 90 Supply with no tax 80 70 60 Tax of 40 SAR 50 40 30 20 10 0 Demand 0 1 2 3 4 5 6 7 8 9 10 Tax on Seller with shift Supply curve up by the amount of the tax
  91. 91. Tax Analysis 100 Supply with 40 SAR tax 90 Supply with no tax 80 70 60 Tax of 40 SAR 50 40 30 20 10 0 Demand 0 1 2 3 4 5 6 7 8 9 10 Tax on Seller with shift Supply curve up by the amount of the tax
  92. 92. Tax Analysis 100 Supply with 40 SAR tax 90 Supply with no tax 80 70 60 Tax of 40 SAR 50 40 30 20 10 0 Demand 0 1 2 3 4 5 6 7 8 9 10 Tax on Seller with shift Supply curve up by the amount of the tax
  93. 93. Tax Analysis 100 Supply with 40 SAR tax 90 Supply with no tax 80 70 60 Tax of 40 SAR 50 40 30 20 10 0 Demand 0 1 2 3 4 5 6 7 8 9 10 Tax on Seller with shift Supply curve up by the amount of the tax
  94. 94. Tax Analysis 100 Supply with 40 SAR tax 90 Supply with no tax 80 70 60 Tax of 40 SAR 50 40 30 20 10 0 Demand 0 1 2 3 4 5 6 7 8 9 10 Tax on Seller with shift Supply curve up by the amount of the tax
  95. 95. Tax Analysis 100 Supply with 40 SAR tax 90 Supply with no tax 80 70 60 Tax of 40 SAR 50 40 30 20 10 0 Demand 0 1 2 3 4 5 6 7 8 9 10 Tax on Seller with shift Supply curve up by the amount of the tax
  96. 96. Tax Analysis 100 Supply with 40 SAR tax 90 Supply with no tax 80 70 60 Tax of 40 SAR 50 40 30 20 10 0 Demand 0 1 2 3 4 5 6 7 8 9 10 Tax on Seller with shift Supply curve up by the amount of the tax
  97. 97. Tax Analysis 100 Supply with 40 SAR tax 90 Supply with no tax 80 70 60 Tax of 40 SAR 50 40 30 20 10 0 Demand 0 1 2 3 4 5 6 7 8 9 10 Tax on Seller with shift Supply curve up by the amount of the tax
  98. 98. Tax Analysis 100 Supply with 40 SAR tax 90 Supply with no tax A 80 70 60 Tax of 40 SAR 50 40 30 20 10 0 Demand 0 1 2 3 4 5 6 7 8 9 10 Tax on Seller with shift Supply curve up by the amount of the tax
  99. 99. Tax Analysis 100 Supply with 40 SAR tax 90 Supply with no tax A 80 70 B 60 Tax of 40 SAR 50 40 30 20 10 0 Demand 0 1 2 3 4 5 6 7 8 9 10 Tax on Seller with shift Supply curve up by the amount of the tax
  100. 100. Tax Analysis 100 Supply with 40 SAR tax 90 Supply with no tax A 80 70 B 60 C Tax of 40 SAR 50 40 30 20 10 0 Demand 0 1 2 3 4 5 6 7 8 9 10 Tax on Seller with shift Supply curve up by the amount of the tax
  101. 101. Tax Analysis 100 Supply with 40 SAR tax 90 Supply with no tax A 80 70 B 60 C Tax of 40 SAR 50 D 40 30 20 10 0 Demand 0 1 2 3 4 5 6 7 8 9 10 Tax on Seller with shift Supply curve up by the amount of the tax
  102. 102. Tax Analysis 100 Supply with 40 SAR tax 90 Supply with no tax A 80 70 B 60 C Tax of 40 SAR 50 E D 40 30 20 10 0 Demand 0 1 2 3 4 5 6 7 8 9 10 Tax on Seller with shift Supply curve up by the amount of the tax
  103. 103. Tax Analysis 100 Supply with 40 SAR tax 90 Supply with no tax A 80 70 B 60 C Tax of 40 SAR 50 E D 40 30 20 F 10 0 Demand 0 1 2 3 4 5 6 7 8 9 10 Tax on Seller with shift Supply curve up by the amount of the tax
  104. 104. Tax Analysis 100 Supply with 40 SAR tax 90 Supply with no tax A 80 70 B 60 C Tax of 40 SAR 50 E D 40 30 20 F 10 0 Demand 0 1 2 3 4 5 6 7 8 9 10 Tax on Seller with shift Supply curve up by the amount of the tax
  105. 105. Tax Analysis 100 Supply with 40 SAR tax 90 Supply with no tax A 80 70 B 60 C Tax of 40 SAR 50 E D 40 30 20 F 10 0 Demand 0 1 2 3 4 5 6 7 8 9 10 Tax on Seller with shift Supply curve up by the amount of the tax
  106. 106. Tax Analysis 100 Supply with 40 SAR tax 90 Supply with no tax A 80 70 B 60 C Tax of 40 SAR 50 E D 40 30 20 F 10 0 Demand 0 1 2 3 4 5 6 7 8 9 10 Tax on Seller with shift Supply curve up by the amount of the tax
  107. 107. Tax Analysis 100 Supply with 40 SAR tax 90 Supply with no tax A 80 70 B 60 C Taxes 50 E D 40 Tax of 40 SAR 30 20 F 10 0 Demand 0 1 2 3 4 5 6 7 8 9 10 Tax on Seller with shift Supply curve up by the amount of the tax
  108. 108. Tax Analysis 100 Supply with 40 SAR tax 90 Buyers Lose C to deadweight loss and lose B to taxes Supply with no tax A 80 70 B 60 C Taxes 50 E D 40 Tax of 40 SAR 30 20 F 10 0 Demand 0 1 2 3 4 5 6 7 8 9 10 Tax on Seller with shift Supply curve up by the amount of the tax
  109. 109. Tax Analysis 100 Supply with 40 SAR tax 90 Buyers Lose C to deadweight loss and lose B to taxes Supply with no tax A 80 Sellers Lose E to deadweight loss and lose D to taxes 70 B 60 C Taxes 50 E D 40 Tax of 40 SAR 30 20 F 10 0 Demand 0 1 2 3 4 5 6 7 8 9 10 Tax on Seller with shift Supply curve up by the amount of the tax
  110. 110. Tax Analysis 100 Supply with 40 SAR tax 90 Buyers Lose C to deadweight loss and lose B to taxes Supply with no tax A 80 Sellers Lose E to deadweight loss and lose D to taxes 70 B 60 C Taxes 50 E D 40 Tax of 40 SAR Government gains B from buyers and D from sellers 30 20 F 10 0 Demand 0 1 2 3 4 5 6 7 8 9 10 Tax on Seller with shift Supply curve up by the amount of the tax
  111. 111. Tax Analysis 100 Supply with 40 SAR tax 90 Buyers Lose C to deadweight loss and lose B to taxes Supply with no tax A 80 70 B 60 Buyers C Sellers Taxes Tax of 40 SAR Total 30 20 0 250 After E D 40 D, E F 125 A 45 F 45 B&D 120 210 Change Taxes 50 A, B, C 125 Lose C 20 Lose B 60 Lose E 20 Lose D 60 Gain B 60 Gain D 60 40 Before Sellers Lose E to deadweight loss and lose D to taxes Government gains B from buyers and D from sellers F 10 0 Demand 0 1 2 3 4 5 6 7 8 9 10 Tax on Seller with shift Supply curve up by the amount of the tax
  112. 112. Export Analysis 100 Domestic Supply 90 80 70 60 Domestic Price 50 40 30 20 10 0 Demand 0 1 2 3 4 5 6 7 8 9 10
  113. 113. Export Analysis 100 Domestic Supply 90 80 70 60 Domestic Price 50 40 30 20 10 0 Demand 0 1 2 3 4 5 6 7 8 9 10
  114. 114. Export Analysis 100 Domestic Supply 90 80 70 60 Domestic Price 50 40 30 20 10 0 Demand 0 1 2 3 4 5 6 7 8 9 10
  115. 115. Export Analysis 100 Domestic Supply 90 80 World Price 70 60 Domestic Price 50 40 30 20 10 0 Demand 0 1 2 3 4 5 6 7 8 9 10
  116. 116. Export Analysis 100 Domestic Supply 90 80 World Price 70 60 Domestic Price 50 40 30 20 10 0 Demand 0 1 2 3 4 5 6 7 8 9 10
  117. 117. Export Analysis 100 Domestic Supply 90 80 World Price 70 60 Domestic Price 50 40 30 20 10 0 Demand 0 1 2 3 4 5 6 7 8 9 10
  118. 118. Export Analysis 100 Domestic Supply 90 80 World Price 70 60 Domestic Price 50 40 30 20 10 0 Demand 0 1 2 3 4 5 6 7 8 9 10
  119. 119. Export Analysis 100 Domestic Supply 90 80 World Price 70 New Demand Domestic & World “kink” 60 Domestic Price 50 40 30 20 10 0 Demand 0 1 2 3 4 5 6 7 8 9 10
  120. 120. Export Analysis 100 Domestic Supply 90 80 World Price 70 New Demand Domestic & World “kink” 60 Domestic Price 50 40 30 20 10 0 Demand 0 1 2 3 4 5 6 7 8 9 10
  121. 121. Export Analysis 100 Domestic Supply 90 80 World Price 70 New Demand Domestic & World “kink” 60 Domestic Price 50 40 30 20 10 0 Demand 0 1 2 3 4 5 6 7 8 9 10
  122. 122. Export Analysis 100 Domestic Supply 90 80 World Price 70 New Demand Domestic & World “kink” 60 Domestic Price 50 40 30 20 10 0 Demand 0 1 2 3 4 5 6 7 8 9 10
  123. 123. Export Analysis 100 Domestic Supply 90 80 World Price 70 New Demand Domestic & World “kink” 60 Domestic Price 50 40 30 20 10 0 Demand 0 1 2 3 4 5 6 7 Total Sales 8 9 10
  124. 124. Export Analysis 100 Domestic Supply 90 80 World Price 70 New Demand Domestic & World “kink” 60 Domestic Price 50 40 30 20 10 0 Demand 0 1 2 3 4 5 6 7 Total Sales 8 9 10
  125. 125. Export Analysis 100 Domestic Supply 90 80 World Price 70 New Demand Domestic & World “kink” 60 Domestic Price 50 40 30 20 10 0 Demand 0 1 2 3 4 5 6 7 Total Sales 8 9 10
  126. 126. Export Analysis 100 Domestic Supply 90 80 World Price 70 New Demand Domestic & World “kink” 60 Domestic Price 50 40 30 20 10 0 Demand 0 1 2 3 4 Domestic Sales 5 6 7 Total Sales 8 9 10
  127. 127. Export Analysis 100 Domestic Supply 90 80 World Price 70 New Demand Domestic & World “kink” 60 Domestic Price 50 40 30 20 10 0 Demand 0 1 2 3 4 Domestic Sales 5 6 7 Total Sales 8 9 10
  128. 128. Export Analysis 100 Domestic Supply 90 Exports 7-3=4 80 World Price 70 New Demand Domestic & World “kink” 60 Domestic Price 50 40 30 20 10 0 Demand 0 1 2 3 4 Domestic Sales 5 6 7 Total Sales 8 9 10
  129. 129. Export Analysis 100 Domestic Supply 90 World Price Exports 7-3=4 A 80 70 New Demand Domestic & World “kink” 60 Domestic Price 50 40 30 20 10 0 Demand 0 1 2 3 4 Domestic Sales 5 6 7 Total Sales 8 9 10
  130. 130. Export Analysis 100 Domestic Supply 90 World Price 70 New Demand Domestic & World “kink” B 60 Domestic Price Exports 7-3=4 A 80 50 40 30 20 10 0 Demand 0 1 2 3 4 Domestic Sales 5 6 7 Total Sales 8 9 10
  131. 131. Export Analysis 100 Domestic Supply 90 World Price Exports 7-3=4 A 80 70 B 60 Domestic Price New Demand Domestic & World “kink” 50 40 C 30 20 10 0 Demand 0 1 2 3 4 Domestic Sales 5 6 7 Total Sales 8 9 10
  132. 132. Export Analysis 100 Domestic Supply 90 World Price Exports 7-3=4 A 80 70 Domestic Price D B 60 New Demand Domestic & World “kink” 50 40 C 30 20 10 0 Demand 0 1 2 3 4 Domestic Sales 5 6 7 Total Sales 8 9 10
  133. 133. Export Analysis 100 Domestic Supply 90 World Price Exports 7-3=4 A 80 70 Domestic Price D B 60 New Demand Domestic & World “kink” 50 40 C 30 20 10 0 Demand 0 1 2 3 4 Domestic Sales 5 6 7 Total Sales 8 9 10
  134. 134. Export Analysis Domestic Buyers pay a higher price lose B to Sellers 100 Domestic Supply 90 World Price Exports 7-3=4 A 80 70 Domestic Price D B 60 New Demand Domestic & World “kink” 50 40 C 30 20 10 0 Demand 0 1 2 3 4 Domestic Sales 5 6 7 Total Sales 8 9 10
  135. 135. Export Analysis Domestic Buyers pay a higher price lose B to Sellers 100 Domestic Supply 90 World Price Exports 7-3=4 A 80 70 Domestic Price D B 60 New Demand Domestic & World “kink” 50 40 C 30 20 10 0 Demand 0 1 2 3 4 Domestic Sales 5 6 7 Total Sales 8 9 10 Domestic Sellers gain D from world market and gain B from domestic buyers
  136. 136. Export Analysis Domestic Buyers pay a higher price lose B to Sellers 100 Domestic Supply 90 World Price Exports 7-3=4 A 80 70 Domestic Price D B 60 New Demand Domestic & World “kink” 50 40 C 30 20 10 0 Demand 0 1 2 3 4 Domestic Sales 5 6 7 Total Sales 8 9 10 Domestic Sellers gain D from world market and gain B from domestic buyers
  137. 137. Export Analysis Domestic Buyers pay a higher price lose B to Sellers 100 Domestic Supply 90 World Price Exports 7-3=4 A 80 70 Domestic Price D B 60 New Demand Domestic & World “kink” 50 40 Consumers Lose Producers Win C 30 20 10 0 Demand 0 1 2 3 4 Domestic Sales 5 6 7 Total Sales 8 9 10 Domestic Sellers gain D from world market and gain B from domestic buyers
  138. 138. Import Analysis 100 Domestic Supply 90 80 70 60 Domestic Price 50 40 30 20 10 0 Demand 0 1 2 3 4 5 6 7 8 9 10
  139. 139. Import Analysis 100 Domestic Supply 90 80 70 60 Domestic Price 50 40 30 20 10 0 Demand 0 1 2 3 4 5 6 7 8 9 10
  140. 140. Import Analysis 100 Domestic Supply 90 80 70 60 Domestic Price 50 40 30 20 10 0 Demand 0 1 2 3 4 5 6 7 8 9 10
  141. 141. Import Analysis 100 Domestic Supply 90 80 70 60 Domestic Price 50 40 World Price 30 20 10 0 Demand 0 1 2 3 4 5 6 7 8 9 10
  142. 142. Import Analysis 100 Domestic Supply 90 80 70 60 Domestic Price 50 40 World Price 30 20 10 0 Demand 0 1 2 3 4 5 6 7 8 9 10
  143. 143. Import Analysis 100 Domestic Supply 90 80 70 60 Domestic Price 50 40 World Price 30 20 10 0 Demand 0 1 2 3 4 5 6 7 8 9 10
  144. 144. Import Analysis 100 Domestic Supply 90 80 70 60 Domestic Price 50 40 World Price 30 20 10 0 Demand 0 1 2 3 4 5 6 7 8 9 10
  145. 145. Import Analysis 100 Domestic Supply 90 80 70 60 Domestic Price 50 New Supply Domestic & World “kink” 40 World Price 30 20 10 0 Demand 0 1 2 3 4 5 6 7 8 9 10
  146. 146. Import Analysis 100 Domestic Supply 90 80 70 60 Domestic Price 50 New Supply Domestic & World “kink” 40 World Price 30 20 10 0 Demand 0 1 2 3 4 5 6 7 8 9 10
  147. 147. Import Analysis 100 Domestic Supply 90 80 70 60 Domestic Price 50 New Supply Domestic & World “kink” 40 World Price 30 20 10 0 Demand 0 1 2 3 4 5 6 7 8 9 10
  148. 148. Import Analysis 100 Domestic Supply 90 80 70 60 Domestic Price 50 New Supply Domestic & World “kink” 40 World Price 30 20 10 0 Demand 0 1 2 3 4 5 6 7 8 9 10
  149. 149. Import Analysis 100 Domestic Supply 90 80 70 60 Domestic Price 50 New Supply Domestic & World “kink” 40 World Price 30 20 10 0 Demand 0 1 2 3 4 5 6 7 Total Sales 8 9 10
  150. 150. Import Analysis 100 Domestic Supply 90 80 70 60 Domestic Price 50 New Supply Domestic & World “kink” 40 World Price 30 20 10 0 Demand 0 1 2 3 4 5 6 7 Total Sales 8 9 10
  151. 151. Import Analysis 100 Domestic Supply 90 80 70 60 Domestic Price 50 New Supply Domestic & World “kink” 40 World Price 30 20 10 0 Demand 0 1 2 3 4 5 6 7 Total Sales 8 9 10
  152. 152. Import Analysis 100 Domestic Supply 90 80 70 60 Domestic Price 50 New Supply Domestic & World “kink” 40 World Price 30 20 10 0 Demand 0 1 2 3 4 Domestic Sales 5 6 7 Total Sales 8 9 10
  153. 153. Import Analysis 100 Domestic Supply 90 80 70 60 Domestic Price 50 New Supply Domestic & World “kink” 40 World Price 30 20 10 0 Demand 0 1 2 3 4 Domestic Sales 5 6 7 Total Sales 8 9 10
  154. 154. Import Analysis 100 Domestic Supply 90 80 70 60 Domestic Price 50 New Supply Domestic & World “kink” 40 World Price 30 20 Imports 7-3=4 10 0 Demand 0 1 2 3 4 Domestic Sales 5 6 7 Total Sales 8 9 10
  155. 155. Import Analysis 100 Domestic Supply 90 80 A 70 60 Domestic Price 50 New Supply Domestic & World “kink” 40 World Price 30 20 Imports 7-3=4 10 0 Demand 0 1 2 3 4 Domestic Sales 5 6 7 Total Sales 8 9 10
  156. 156. Import Analysis 100 Domestic Supply 90 80 A 70 60 Domestic Price 50 B 40 World Price New Supply Domestic & World “kink” 30 20 Imports 7-3=4 10 0 Demand 0 1 2 3 4 Domestic Sales 5 6 7 Total Sales 8 9 10
  157. 157. Import Analysis 100 Domestic Supply 90 80 A 70 60 Domestic Price 50 B 40 World Price New Supply Domestic & World “kink” 30 C 20 Imports 7-3=4 10 0 Demand 0 1 2 3 4 Domestic Sales 5 6 7 Total Sales 8 9 10
  158. 158. Import Analysis 100 Domestic Supply 90 80 A 70 60 Domestic Price 50 B 40 World Price New Supply Domestic & World “kink” D 30 C 20 Imports 7-3=4 10 0 Demand 0 1 2 3 4 Domestic Sales 5 6 7 Total Sales 8 9 10
  159. 159. Import Analysis 100 Domestic Supply 90 80 A 70 60 Domestic Price 50 B 40 World Price New Supply Domestic & World “kink” D 30 C 20 Imports 7-3=4 10 0 Demand 0 1 2 3 4 Domestic Sales 5 6 7 Total Sales 8 9 10
  160. 160. Import Analysis Domestic Buyers pay a lower price gain D from world sellers and gain B from domestic sellers 100 Domestic Supply 90 80 A 70 60 Domestic Price 50 B 40 World Price New Supply Domestic & World “kink” D 30 C 20 Imports 7-3=4 10 0 Demand 0 1 2 3 4 Domestic Sales 5 6 7 Total Sales 8 9 10
  161. 161. Import Analysis Domestic Buyers pay a lower price gain D from world sellers and gain B from domestic sellers 100 Domestic Supply 90 80 A 70 Domestic Sellers lose B to Buyers 60 Domestic Price 50 B 40 World Price New Supply Domestic & World “kink” D 30 C 20 Imports 7-3=4 10 0 Demand 0 1 2 3 4 Domestic Sales 5 6 7 Total Sales 8 9 10
  162. 162. Import Analysis Domestic Buyers pay a lower price gain D from world sellers and gain B from domestic sellers 100 Domestic Supply 90 80 A 70 Domestic Sellers lose B to Buyers 60 Domestic Price 50 B 40 World Price New Supply Domestic & World “kink” D 30 C 20 Imports 7-3=4 10 0 Demand 0 1 2 3 4 Domestic Sales 5 6 7 Total Sales 8 9 10
  163. 163. Import Analysis Domestic Buyers pay a lower price gain D from world sellers and gain B from domestic sellers 100 Domestic Supply 90 Consumers Win Producers Lose 80 A 70 60 Domestic Price 50 B 40 World Price Domestic Sellers lose B to Buyers New Supply Domestic & World “kink” D 30 C 20 Imports 7-3=4 10 0 Demand 0 1 2 3 4 Domestic Sales 5 6 7 Total Sales 8 9 10
  164. 164. Tariff Analysis 100 Domestic Supply 90 80 70 60 Domestic Price 50 40 30 20 10 0 Demand 0 1 2 3 4 5 6 7 8 9 10
  165. 165. Tariff Analysis 100 Domestic Supply 90 80 70 60 Domestic Price 50 40 30 20 10 0 Demand 0 1 2 3 4 5 6 7 8 9 10
  166. 166. Tariff Analysis 100 Domestic Supply 90 80 70 60 Domestic Price 50 40 30 20 10 0 Demand 0 1 2 3 4 5 6 7 8 9 10
  167. 167. Tariff Analysis 100 Domestic Supply 90 80 70 60 Domestic Price 50 40 World Price 30 20 10 0 Demand 0 1 2 3 4 5 6 7 8 9 10
  168. 168. Tariff Analysis 100 Domestic Supply 90 80 70 60 Domestic Price 50 40 World Price 30 20 10 0 Demand 0 1 2 3 4 5 6 7 8 9 10
  169. 169. Tariff Analysis 100 Domestic Supply 90 80 70 60 Domestic Price 50 40 World Price 30 20 10 0 Demand 0 1 2 3 4 5 6 7 8 9 10
  170. 170. Tariff Analysis 100 Domestic Supply 90 80 70 60 Domestic Price 50 40 World Price 30 20 10 0 Demand 0 1 2 3 4 5 6 7 8 9 10
  171. 171. Tariff Analysis 100 Domestic Supply 90 80 70 60 Domestic Price 50 40 World Price 30 20 10 0 Demand 0 1 2 3 4 5 6 7 8 9 10
  172. 172. Tariff Analysis 100 Domestic Supply 90 80 70 60 Domestic Price 50 40 World Price Tariff of 10 30 20 10 0 Demand 0 1 2 3 4 5 6 7 8 9 10
  173. 173. Tariff Analysis 100 Domestic Supply 90 80 70 60 Domestic Price 50 40 World Price Tariff of 10 30 20 10 0 Demand 0 1 2 3 4 5 6 7 8 9 10
  174. 174. Tariff Analysis 100 Domestic Supply 90 80 70 60 Domestic Price 50 40 World Price Tariff of 10 30 20 10 0 Demand 0 1 2 3 4 5 6 7 8 9 10
  175. 175. Tariff Analysis 100 Domestic Supply 90 80 70 60 Domestic Price Price with Tariff World Price 50 40 Tariff of 10 30 20 10 0 Demand 0 1 2 3 4 5 6 7 8 9 10
  176. 176. Tariff Analysis 100 Domestic Supply 90 80 70 60 Domestic Price Price with Tariff World Price 50 40 Tariff of 10 30 20 10 0 Demand 0 1 2 3 4 5 6 7 8 9 10
  177. 177. Tariff Analysis 100 Domestic Supply 90 80 70 60 Domestic Price Price with Tariff World Price 50 40 Tariff of 10 30 20 10 0 Demand 0 1 2 3 4 5 6 7 8 9 10
  178. 178. Tariff Analysis 100 Domestic Supply 90 80 70 60 Domestic Price Price with Tariff World Price 50 40 Tariff of 10 30 20 10 0 Demand 0 1 2 3 4 5 6 7 8 9 10
  179. 179. Tariff Analysis 100 Domestic Supply 90 80 70 60 Domestic Price Price with Tariff World Price 50 40 Tariff of 10 30 20 10 0 Demand 0 1 2 3 4 5 6 7 8 9 10
  180. 180. Tariff Analysis 100 Domestic Supply 90 80 70 60 Domestic Price Price with Tariff World Price 50 40 Tariff of 10 30 20 10 0 Demand 0 1 2 3 4 5 6 7 8 9 10
  181. 181. Tariff Analysis 100 Domestic Supply 90 80 70 60 Domestic Price Price with Tariff World Price 50 40 Tariff of 10 30 20 10 0 Demand 0 1 2 3 4 5 6 7 8 9 10
  182. 182. Tariff Analysis 100 Domestic Supply 90 80 A 70 60 Domestic Price Price with Tariff World Price 50 40 Tariff of 10 30 20 10 0 Demand 0 1 2 3 4 5 6 7 8 9 10
  183. 183. Tariff Analysis 100 Domestic Supply 90 80 A 70 60 Domestic Price Price with Tariff World Price 50 B 40 Tariff of 10 30 20 10 0 Demand 0 1 2 3 4 5 6 7 8 9 10
  184. 184. Tariff Analysis 100 Domestic Supply 90 80 A 70 60 Domestic Price Price with Tariff World Price 50 B 40 C 30 Tariff of 10 20 10 0 Demand 0 1 2 3 4 5 6 7 8 9 10
  185. 185. Tariff Analysis 100 Domestic Supply 90 80 A 70 60 Domestic Price Price with Tariff World Price 50 B 40 C 30 D Tariff of 10 20 10 0 Demand 0 1 2 3 4 5 6 7 8 9 10
  186. 186. Tariff Analysis 100 Domestic Supply 90 80 A 70 60 Domestic Price Price with Tariff World Price 50 40 C 30 D B E Tariff of 10 20 10 0 Demand 0 1 2 3 4 5 6 7 8 9 10
  187. 187. Tariff Analysis 100 Domestic Supply 90 80 A 70 60 Domestic Price Price with Tariff World Price 50 40 C 30 D B E F Tariff of 10 20 10 0 Demand 0 1 2 3 4 5 6 7 8 9 10
  188. 188. Tariff Analysis 100 Domestic Supply 90 80 A 70 60 Domestic Price Price with Tariff World Price 50 40 C 30 D B E F Tariff of 10 G 20 10 0 Demand 0 1 2 3 4 5 6 7 8 9 10
  189. 189. Tariff Analysis 100 Domestic Supply 90 Consumers Lose Producers Win Government Wins Deadweight Losses 80 A 70 60 Domestic Price Price with Tariff World Price 50 40 C 30 D B E F Tariff of 10 G 20 10 0 Demand 0 1 2 3 4 5 6 7 8 9 10
  190. 190. Laissez Faire
  191. 191. Laissez Faire Page 152

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