This chapter discusses how government policies like price controls and taxes impact market outcomes. Price ceilings set maximum prices and result in shortages, while price floors set minimum prices and cause surpluses. Taxes place a wedge between what buyers pay and sellers receive, reducing equilibrium quantity. The incidence of a tax, or how the burden is shared, depends on supply and demand elasticities.
This document discusses key concepts related to consumer surplus, producer surplus, and market efficiency. It asks questions about consumer surplus and its relationship to demand, producer surplus and its relationship to supply, and whether markets produce a desirable allocation of resources or if outcomes could be improved. The document then provides context on welfare economics and how the allocation of resources affects economic well-being.
This chapter discusses how government policies like price controls and taxes can affect market outcomes. Price ceilings, which set a legal maximum price, typically cause shortages by creating a gap between the maximum price and the market equilibrium price. Price floors, which set a legal minimum price, typically cause surpluses by creating a gap between the minimum price and the market equilibrium price. Taxes can be levied on buyers or sellers, but they have similar effects by driving a wedge between the price buyers pay and sellers receive. The incidence of a tax, or how the burden is shared, depends on the elasticities of supply and demand.
This document discusses the costs of taxation according to microeconomic principles. It explains that a tax reduces consumer surplus, producer surplus, and total surplus by creating a deadweight loss. The size of the deadweight loss depends on the price elasticities of supply and demand - more elastic demand or supply leads to a larger deadweight loss. Increasing the size of an existing tax causes the deadweight loss to rise more than proportionately and causes tax revenue to initially rise and then fall, following a Laffer curve pattern.
The document discusses the costs of taxation, including how taxes affect consumer surplus, producer surplus, and total surplus. It explains that the deadweight loss of a tax is the reduction in total surplus that results from the market distortion caused by the tax. The size of the deadweight loss depends on the price elasticities of supply and demand - the more elastic they are, the larger the deadweight loss will be. Doubling or tripling a tax causes the deadweight loss to increase by more than the amount of the tax increase. Tax revenue initially increases with tax size but eventually falls as the tax further reduces the size of the market.
This document discusses how government policies such as price controls and taxes can impact market outcomes. It begins by defining price ceilings and floors, providing examples of each. It then analyzes how price ceilings and floors affect markets using supply and demand diagrams, showing that ceilings lead to shortages while floors lead to surpluses. The document also examines how taxes on buyers versus sellers impact markets. When the tax is on buyers, the demand curve shifts down, while a tax on sellers shifts the supply curve up. In both cases, the quantity traded falls from the original equilibrium level.
Bab 8 membahas tentang maksimisasi laba dan penawaran bersaing. Perusahaan dalam pasar bersaing sempurna akan memilih output dimana pendapatan marjinal sama dengan biaya marjinal untuk memaksimalkan laba jangka pendek. Kurva penawaran jangka pendek perusahaan bersaing terdiri dari bagian kurva biaya marjinal dimana biaya marjinal lebih besar dari biaya variabel rata-rata.
A competitive market has many small firms that produce identical goods, with free entry and exit. Each firm is a price taker and maximizes profits by producing where marginal revenue equals marginal cost. The competitive firm's supply curve is its marginal cost curve above average variable cost in the short run and above average total cost in the long run. Market supply is the sum of individual firm supplies. In the long run, entry and exit drive the market to equilibrium with price equal to minimum average total cost and zero profits.
This document discusses key concepts related to consumer surplus, producer surplus, and market efficiency. It asks questions about consumer surplus and its relationship to demand, producer surplus and its relationship to supply, and whether markets produce a desirable allocation of resources or if outcomes could be improved. The document then provides context on welfare economics and how the allocation of resources affects economic well-being.
This chapter discusses how government policies like price controls and taxes can affect market outcomes. Price ceilings, which set a legal maximum price, typically cause shortages by creating a gap between the maximum price and the market equilibrium price. Price floors, which set a legal minimum price, typically cause surpluses by creating a gap between the minimum price and the market equilibrium price. Taxes can be levied on buyers or sellers, but they have similar effects by driving a wedge between the price buyers pay and sellers receive. The incidence of a tax, or how the burden is shared, depends on the elasticities of supply and demand.
This document discusses the costs of taxation according to microeconomic principles. It explains that a tax reduces consumer surplus, producer surplus, and total surplus by creating a deadweight loss. The size of the deadweight loss depends on the price elasticities of supply and demand - more elastic demand or supply leads to a larger deadweight loss. Increasing the size of an existing tax causes the deadweight loss to rise more than proportionately and causes tax revenue to initially rise and then fall, following a Laffer curve pattern.
The document discusses the costs of taxation, including how taxes affect consumer surplus, producer surplus, and total surplus. It explains that the deadweight loss of a tax is the reduction in total surplus that results from the market distortion caused by the tax. The size of the deadweight loss depends on the price elasticities of supply and demand - the more elastic they are, the larger the deadweight loss will be. Doubling or tripling a tax causes the deadweight loss to increase by more than the amount of the tax increase. Tax revenue initially increases with tax size but eventually falls as the tax further reduces the size of the market.
This document discusses how government policies such as price controls and taxes can impact market outcomes. It begins by defining price ceilings and floors, providing examples of each. It then analyzes how price ceilings and floors affect markets using supply and demand diagrams, showing that ceilings lead to shortages while floors lead to surpluses. The document also examines how taxes on buyers versus sellers impact markets. When the tax is on buyers, the demand curve shifts down, while a tax on sellers shifts the supply curve up. In both cases, the quantity traded falls from the original equilibrium level.
Bab 8 membahas tentang maksimisasi laba dan penawaran bersaing. Perusahaan dalam pasar bersaing sempurna akan memilih output dimana pendapatan marjinal sama dengan biaya marjinal untuk memaksimalkan laba jangka pendek. Kurva penawaran jangka pendek perusahaan bersaing terdiri dari bagian kurva biaya marjinal dimana biaya marjinal lebih besar dari biaya variabel rata-rata.
A competitive market has many small firms that produce identical goods, with free entry and exit. Each firm is a price taker and maximizes profits by producing where marginal revenue equals marginal cost. The competitive firm's supply curve is its marginal cost curve above average variable cost in the short run and above average total cost in the long run. Market supply is the sum of individual firm supplies. In the long run, entry and exit drive the market to equilibrium with price equal to minimum average total cost and zero profits.
Mankiew chapter 10 Eksternalitas indonesian versionRista airen
Dokumen tersebut membahas tentang eksternalitas, yaitu dampak tak terkompensasi dari tindakan seseorang terhadap orang lain. Ada dua jenis eksternalitas, yaitu negatif seperti polusi dan positif seperti pendidikan. Dokumen ini juga menjelaskan berbagai kebijakan pemerintah dalam menangani masalah eksternalitas seperti pajak dan subsidi."
Marginal cost is the increase in total cost from producing one more unit of output. It is usually rising as quantity increases due to diminishing marginal productivity. Average total cost is total cost divided by quantity and is typically U-shaped as initially fixed costs are spread over more units but variable costs eventually increase faster than output. Understanding costs like marginal, average, fixed and variable helps firms determine optimal production levels to maximize profits.
Dokumen tersebut membahas tentang permintaan dan penawaran, termasuk pengertian, faktor-faktor yang mempengaruhi, hukum, dan kurva permintaan serta penawaran. Secara rinci dibahas hubungan antara harga dan jumlah barang yang diminta/ditawarkan, serta cara menentukan fungsi dan gambar kurva permintaan dan penawaran.
This document provides an overview of externalities and how they can lead to inefficient market outcomes. It discusses:
1) What externalities are and how they can be negative or positive, depending on their impact on third parties. Negative externalities like pollution mean the market produces too much of a good, while positive externalities mean too little is produced.
2) How public policies like taxes or subsidies can "internalize" externalities by making producers and consumers consider these external impacts. A tax on pollution would align private and social costs, leading to the efficient level of production.
3) Examples of both negative externalities like air pollution and positive externalities like vaccination. The document analyzes these situations using demand
Economists use models like the circular flow diagram and production possibilities frontier (PPF) to study economic concepts. The circular flow diagram shows how resources and dollars flow between households and firms. The PPF illustrates production tradeoffs and opportunity costs given limited resources. Microeconomics analyzes individual markets, while macroeconomics examines economy-wide issues. Economists aim to explain the world scientifically and advise on policy normatively.
Dokumen tersebut membahas tentang struktur pasar dan jenis-jenisnya, yaitu pasar persaingan sempurna, pasar monopoli, pasar oligopoli, dan pasar monopolistik. Dibahas pula ciri-ciri dan kurva permintaan perusahaan serta pasar pada kondisi persaingan sempurna. Dijelaskan pula konsep permintaan, penjualan, biaya, dan keseimbangan pasar dalam jangka pendek dan panjang. Beberapa contoh so
The document discusses consumer surplus, producer surplus, and how markets allocate resources efficiently. It defines:
- Consumer surplus as what consumers are willing to pay minus the price paid, and how it relates to the demand curve.
- Producer surplus as the price received minus costs of production, and how it relates to the supply curve.
- An efficient allocation as one that maximizes total surplus by having goods consumed by those valuing them most and produced by lowest cost producers.
The document evaluates an equilibrium in terms of efficiency using demand and supply curves to show buyers and sellers that transact value the good most and have lowest costs.
Mankiew chapter 7 Consumers, Producers, and the Efficiency of MarketsAbd ELRahman ALFar
What is consumer surplus? How is it related to the demand curve?
What is producer surplus? How is it related to the supply curve?
Do markets produce a desirable allocation of resources? Or could the market outcome be improved upon?
This document discusses profit maximization and competitive supply. It begins by defining perfectly competitive markets and their key characteristics of price taking, product homogeneity, and free entry/exit. It then explains that firms seek to maximize profits in the long run. Using marginal revenue and marginal cost, it shows that firms maximize profits by producing at the quantity where marginal revenue equals marginal cost. In the short run, individual firms and industries will increase or decrease output in response to price changes until marginal cost again equals price at the new profit-maximizing quantity.
Dokumen tersebut membahas tentang surplus konsumen dan produsen. Surplus konsumen adalah perbedaan antara daya beli konsumen dengan harga pasar, sedangkan surplus produsen adalah perbedaan antara harga pasar yang diterima penjual dengan harga yang mereka tentukan. Dokumen ini juga menjelaskan konsep maksimum dan minimum dari kurva permintaan dan penawaran serta medan transaksi yang terjadi di pasar.
Chapter 07 Consumers, Producers And The Efficiency Of Marketsira78
This chapter discusses consumer surplus, producer surplus, and how markets allocate resources efficiently. It defines key concepts like demand, supply, willingness to pay, and opportunity cost. The document analyzes an example market equilibrium and finds that it maximizes total surplus, allocating resources efficiently by having goods produced by low-cost sellers and consumed by buyers who value them most. The market outcome cannot be improved upon, suggesting governments should generally not interfere with free markets.
This presentation is used in my lecture on market equilibrium analysis(Managerial Economics-MBA). Your feedback is important for me. Thx
My other work can be seen at www.educationpyramid.com
The document discusses the costs of production for a firm. It provides two examples:
1) Farmer Jack's wheat production, which shows how costs like labor wages and land rent contribute to total costs. Marginal product and costs are defined.
2) A general example of fixed, variable, and total costs. It shows how average costs like AFC, AVC, and ATC change with quantity and can be U-shaped. Marginal cost is also examined.
Perfect competition is an ideal market structure where many small firms produce identical goods, there are no barriers to entry or exit, and both buyers and sellers have perfect information. Under perfect competition in the long run, firms earn zero economic profit and both allocative and productive efficiency are achieved as price equals marginal cost and firms produce at minimum average total cost.
Teori perdagangan baru membahas bagaimana skala ekonomi dan beragam produk dapat meningkatkan perdagangan internasional. Teori ini menjelaskan bagaimana setiap negara dapat mengkhususkan diri dalam memproduksi berbagai produk sehingga meningkatkan pilihan konsumen dan menurunkan biaya melalui perdagangan.
pengaruh kebijakan moneter dan fiskal terhadap permintaan agregatHasnah Rhiriesad
Kebijakan moneter dan fiskal mempengaruhi permintaan agregat melalui beberapa kanal. Kebijakan moneter mengontrol jumlah uang beredar dan mempengaruhi permintaan agregat melalui suku bunga dan preferensi likuiditas. Kebijakan fiskal seperti belanja pemerintah dan pajak dapat menggeser kurva permintaan agregat karena mempengaruhi pendapatan dan konsumsi rumah tangga. Ada pendapat yang mendukung dan menentang
1. International trade allows countries to benefit from specializing in goods where they have a comparative advantage and trading for other goods.
2. While Luxembourg has an absolute advantage in both TVs and t-shirts, it has a comparative advantage in TVs due to lower opportunity costs of production. Burundi has a comparative advantage in t-shirts.
3. When Luxembourg and Burundi specialize and trade according to their comparative advantages, both countries increase their overall production possibilities through gains from trade.
This document discusses different types of goods: private goods, public goods, common resources, and natural monopolies. It defines excludability and rivalry as characteristics used to classify goods. Public goods are non-excludable and non-rival, leading to free-rider problems where the market fails to provide them. Common resources are non-excludable but rival, prone to overuse in the tragedy of the commons. The document stresses the importance of well-defined property rights to avoid market failures.
This document discusses elasticity and its applications. It defines price elasticity of demand and supply as the percentage change in quantity demanded or supplied given a percentage change in price. Demand can be elastic, inelastic, or unit elastic depending on how much quantity changes with price. The document also discusses factors that determine elasticity, how to compute elasticity, and how shifts in supply or demand impact equilibrium price and quantity in a market.
Mankiew chapter 10 Eksternalitas indonesian versionRista airen
Dokumen tersebut membahas tentang eksternalitas, yaitu dampak tak terkompensasi dari tindakan seseorang terhadap orang lain. Ada dua jenis eksternalitas, yaitu negatif seperti polusi dan positif seperti pendidikan. Dokumen ini juga menjelaskan berbagai kebijakan pemerintah dalam menangani masalah eksternalitas seperti pajak dan subsidi."
Marginal cost is the increase in total cost from producing one more unit of output. It is usually rising as quantity increases due to diminishing marginal productivity. Average total cost is total cost divided by quantity and is typically U-shaped as initially fixed costs are spread over more units but variable costs eventually increase faster than output. Understanding costs like marginal, average, fixed and variable helps firms determine optimal production levels to maximize profits.
Dokumen tersebut membahas tentang permintaan dan penawaran, termasuk pengertian, faktor-faktor yang mempengaruhi, hukum, dan kurva permintaan serta penawaran. Secara rinci dibahas hubungan antara harga dan jumlah barang yang diminta/ditawarkan, serta cara menentukan fungsi dan gambar kurva permintaan dan penawaran.
This document provides an overview of externalities and how they can lead to inefficient market outcomes. It discusses:
1) What externalities are and how they can be negative or positive, depending on their impact on third parties. Negative externalities like pollution mean the market produces too much of a good, while positive externalities mean too little is produced.
2) How public policies like taxes or subsidies can "internalize" externalities by making producers and consumers consider these external impacts. A tax on pollution would align private and social costs, leading to the efficient level of production.
3) Examples of both negative externalities like air pollution and positive externalities like vaccination. The document analyzes these situations using demand
Economists use models like the circular flow diagram and production possibilities frontier (PPF) to study economic concepts. The circular flow diagram shows how resources and dollars flow between households and firms. The PPF illustrates production tradeoffs and opportunity costs given limited resources. Microeconomics analyzes individual markets, while macroeconomics examines economy-wide issues. Economists aim to explain the world scientifically and advise on policy normatively.
Dokumen tersebut membahas tentang struktur pasar dan jenis-jenisnya, yaitu pasar persaingan sempurna, pasar monopoli, pasar oligopoli, dan pasar monopolistik. Dibahas pula ciri-ciri dan kurva permintaan perusahaan serta pasar pada kondisi persaingan sempurna. Dijelaskan pula konsep permintaan, penjualan, biaya, dan keseimbangan pasar dalam jangka pendek dan panjang. Beberapa contoh so
The document discusses consumer surplus, producer surplus, and how markets allocate resources efficiently. It defines:
- Consumer surplus as what consumers are willing to pay minus the price paid, and how it relates to the demand curve.
- Producer surplus as the price received minus costs of production, and how it relates to the supply curve.
- An efficient allocation as one that maximizes total surplus by having goods consumed by those valuing them most and produced by lowest cost producers.
The document evaluates an equilibrium in terms of efficiency using demand and supply curves to show buyers and sellers that transact value the good most and have lowest costs.
Mankiew chapter 7 Consumers, Producers, and the Efficiency of MarketsAbd ELRahman ALFar
What is consumer surplus? How is it related to the demand curve?
What is producer surplus? How is it related to the supply curve?
Do markets produce a desirable allocation of resources? Or could the market outcome be improved upon?
This document discusses profit maximization and competitive supply. It begins by defining perfectly competitive markets and their key characteristics of price taking, product homogeneity, and free entry/exit. It then explains that firms seek to maximize profits in the long run. Using marginal revenue and marginal cost, it shows that firms maximize profits by producing at the quantity where marginal revenue equals marginal cost. In the short run, individual firms and industries will increase or decrease output in response to price changes until marginal cost again equals price at the new profit-maximizing quantity.
Dokumen tersebut membahas tentang surplus konsumen dan produsen. Surplus konsumen adalah perbedaan antara daya beli konsumen dengan harga pasar, sedangkan surplus produsen adalah perbedaan antara harga pasar yang diterima penjual dengan harga yang mereka tentukan. Dokumen ini juga menjelaskan konsep maksimum dan minimum dari kurva permintaan dan penawaran serta medan transaksi yang terjadi di pasar.
Chapter 07 Consumers, Producers And The Efficiency Of Marketsira78
This chapter discusses consumer surplus, producer surplus, and how markets allocate resources efficiently. It defines key concepts like demand, supply, willingness to pay, and opportunity cost. The document analyzes an example market equilibrium and finds that it maximizes total surplus, allocating resources efficiently by having goods produced by low-cost sellers and consumed by buyers who value them most. The market outcome cannot be improved upon, suggesting governments should generally not interfere with free markets.
This presentation is used in my lecture on market equilibrium analysis(Managerial Economics-MBA). Your feedback is important for me. Thx
My other work can be seen at www.educationpyramid.com
The document discusses the costs of production for a firm. It provides two examples:
1) Farmer Jack's wheat production, which shows how costs like labor wages and land rent contribute to total costs. Marginal product and costs are defined.
2) A general example of fixed, variable, and total costs. It shows how average costs like AFC, AVC, and ATC change with quantity and can be U-shaped. Marginal cost is also examined.
Perfect competition is an ideal market structure where many small firms produce identical goods, there are no barriers to entry or exit, and both buyers and sellers have perfect information. Under perfect competition in the long run, firms earn zero economic profit and both allocative and productive efficiency are achieved as price equals marginal cost and firms produce at minimum average total cost.
Teori perdagangan baru membahas bagaimana skala ekonomi dan beragam produk dapat meningkatkan perdagangan internasional. Teori ini menjelaskan bagaimana setiap negara dapat mengkhususkan diri dalam memproduksi berbagai produk sehingga meningkatkan pilihan konsumen dan menurunkan biaya melalui perdagangan.
pengaruh kebijakan moneter dan fiskal terhadap permintaan agregatHasnah Rhiriesad
Kebijakan moneter dan fiskal mempengaruhi permintaan agregat melalui beberapa kanal. Kebijakan moneter mengontrol jumlah uang beredar dan mempengaruhi permintaan agregat melalui suku bunga dan preferensi likuiditas. Kebijakan fiskal seperti belanja pemerintah dan pajak dapat menggeser kurva permintaan agregat karena mempengaruhi pendapatan dan konsumsi rumah tangga. Ada pendapat yang mendukung dan menentang
1. International trade allows countries to benefit from specializing in goods where they have a comparative advantage and trading for other goods.
2. While Luxembourg has an absolute advantage in both TVs and t-shirts, it has a comparative advantage in TVs due to lower opportunity costs of production. Burundi has a comparative advantage in t-shirts.
3. When Luxembourg and Burundi specialize and trade according to their comparative advantages, both countries increase their overall production possibilities through gains from trade.
This document discusses different types of goods: private goods, public goods, common resources, and natural monopolies. It defines excludability and rivalry as characteristics used to classify goods. Public goods are non-excludable and non-rival, leading to free-rider problems where the market fails to provide them. Common resources are non-excludable but rival, prone to overuse in the tragedy of the commons. The document stresses the importance of well-defined property rights to avoid market failures.
This document discusses elasticity and its applications. It defines price elasticity of demand and supply as the percentage change in quantity demanded or supplied given a percentage change in price. Demand can be elastic, inelastic, or unit elastic depending on how much quantity changes with price. The document also discusses factors that determine elasticity, how to compute elasticity, and how shifts in supply or demand impact equilibrium price and quantity in a market.
This document discusses various theories and strategies for motivating employees, including:
- Maslow's hierarchy of needs and Herzberg's two-factor theory, which identify important factors like achievement, recognition, and responsibility.
- McGregor's Theory X and Theory Y, which propose different views of employee motivation and responsibility.
- Equity theory and expectancy theory, which suggest motivation depends on fair rewards and expectations of achievement.
- Strategies like job rotation, job enlargement, and behavior modification can be used to boost motivation.
The document summarizes demographic trends in the United States between 2000-2010. It states that Americans over 50 years old will rise 30% during this period, while Asian and Hispanic populations are the fastest growing segments. It also notes that the Baby Boomer generation is the most educated generation ever, and the fastest growing household type is headed by a woman with no man present.
This document discusses consumer surplus, producer surplus, and how markets allocate resources efficiently. It defines consumer surplus as the difference between what consumers are willing to pay and the actual market price. Producer surplus is defined as the difference between the market price and what it costs producers. The market equilibrium maximizes total surplus, which is the sum of consumer and producer surplus. This occurs when resources are allocated such that goods are produced by the lowest-cost producers and consumed by those who value them the most.
This chapter discusses how government policies such as price controls, taxes, and minimum wages can impact markets. Price ceilings place a legal maximum price for a good, which can result in shortages if the ceiling is binding. Price floors set a legal minimum price, potentially leading to surpluses. Taxes decrease the quantity of goods sold by creating a wedge between buyer and seller prices; the tax burden depends on supply and demand elasticities. The minimum wage is an example of a price floor that can cause unemployment in the labor market.
This document discusses price controls and their impact on supply and demand. It provides examples of price ceilings, which establish a legal maximum price, and price floors, which set a legal minimum price. Price ceilings can cause shortages by creating a surplus of demand over supply. Price floors can result in surpluses or unemployment by producing a surplus of supply over demand. The effects are illustrated using supply and demand graphs for rental housing prices under a price ceiling and wages for unskilled labor under a minimum wage price floor.
This chapter introduces some of the key principles of economics. It discusses that economics addresses questions about how societies manage scarce resources. It explores four main principles: how people make decisions, how people interact, how markets usually provide a good way to organize economic activity, and how governments can sometimes improve market outcomes. The chapter provides examples and discussion of opportunity costs, incentives, trade, and the role of prices in allocating resources. It also addresses how a country's standard of living depends on its ability to produce goods and services.
The document describes the basic architecture and components of a computer processor. It explains that a processor fetches instructions from memory through a fetch/execute cycle. It first copies the address of the next instruction from the sequence control register to the memory address register. It then copies the instruction from memory to the memory data register and instruction register for execution by the control unit. The main components are the memory, processor, registers, arithmetic logic unit, accumulator, and peripheral devices that provide input/output.
This document discusses supply and demand. It begins by asking questions about factors that affect demand and supply, and how supply and demand determine price and quantity. It then defines markets and competition. The rest of the document discusses the concepts of demand, including demand schedules and curves. It explains individual demand versus market demand. It also discusses factors that can shift the demand curve, like number of buyers, income, prices of related goods, tastes, and expectations. Similarly, it covers the concepts of supply, including supply schedules and curves, as well as factors that shift the supply curve, like input prices, technology, number of sellers, and expectations. In summary, it provides an overview of the key microeconomic concepts of supply, demand,
This document provides an overview of operations management concepts. It discusses key topics such as transformation processes, manufacturing versus services, capacity, facilities planning and layout, technology, quality management, and supply chain management. Operations management involves planning, organizing, and supervising the activities required to transform inputs into finished goods and services.
This document discusses organizational structure and communication. It covers topics like organizational culture, different types of organizational structures including line, line-and-staff and matrix structures. It also discusses teams, assigning tasks, and formal and informal communication channels. Effective organizational structure and communication are important for coordinating work and ensuring goals are met.
The document discusses the nature of management. It covers key management functions like planning, organizing, staffing, directing, and controlling. It also discusses management skills needed like leadership, technical expertise, conceptual skills, analytical skills, and human relations skills. Finally, it discusses decision making and the reality of management as not being a cut-and-dried process but rather involving establishing agendas, networking, and confronting complex business challenges.
1) The document discusses various forms of business organization including sole proprietorships, partnerships, corporations, franchises, and other structures.
2) It notes that small businesses represent most businesses in the US, create most new jobs, and are a major source of innovation. Popular small business industries include retailing, services, manufacturing, and high technology.
3) The document covers topics such as starting a new business versus buying an existing one, writing a business plan, sources of financing including personal capital, loans, equity, and venture capital. It also discusses franchising and resources available to help small business owners.
The document discusses business ethics and corporate social responsibility. It describes how ethical decisions in organizations are influenced by an organization's code of ethics, its culture and leadership. It also discusses the importance of corporate citizenship and meeting responsibilities to stakeholders like shareholders, employees, consumers and the environment. The concept of sustainability and protecting the long-term environment is also mentioned.
This document appears to be the first chapter of a business textbook. It introduces some key concepts about business including:
- The primary goal of business is to earn a profit by providing products or services that satisfy customer needs.
- Stakeholders are those that have a stake in the success and outcomes of a business, such as customers, employees, investors, and society.
- Businesses engage in various activities to operate including management, production, marketing, and finance.
- Economics involves the distribution of scarce resources for the production of goods and services. No country practices a pure economic system and most have a mixed economy with elements of government intervention.
- Supply and demand and competition influence how resources
The document discusses various topics related to human resource management including planning HR needs through job analysis and descriptions, recruiting employees through internal and external sources, selecting employees using applications, interviews, testing and reference checks, developing the workforce through orientation, training, development and performance assessment, compensating the workforce using various financial and benefit programs, and managing unionized employees. Legal issues must be considered throughout HR processes.
Narkoba adalah zat atau obat berbahaya yang dapat menyebabkan ketergantungan dan memiliki dampak merusak secara fisik maupun psikis. Semua agama besar di Indonesia melarang penggunaan narkoba. Tulisan ini membahas definisi narkoba, dampaknya, dan pandangan agama terhadap narkoba.
How to Manage Your Lost Opportunities in Odoo 17 CRMCeline George
Odoo 17 CRM allows us to track why we lose sales opportunities with "Lost Reasons." This helps analyze our sales process and identify areas for improvement. Here's how to configure lost reasons in Odoo 17 CRM
A review of the growth of the Israel Genealogy Research Association Database Collection for the last 12 months. Our collection is now passed the 3 million mark and still growing. See which archives have contributed the most. See the different types of records we have, and which years have had records added. You can also see what we have for the future.
Walmart Business+ and Spark Good for Nonprofits.pdfTechSoup
"Learn about all the ways Walmart supports nonprofit organizations.
You will hear from Liz Willett, the Head of Nonprofits, and hear about what Walmart is doing to help nonprofits, including Walmart Business and Spark Good. Walmart Business+ is a new offer for nonprofits that offers discounts and also streamlines nonprofits order and expense tracking, saving time and money.
The webinar may also give some examples on how nonprofits can best leverage Walmart Business+.
The event will cover the following::
Walmart Business + (https://business.walmart.com/plus) is a new shopping experience for nonprofits, schools, and local business customers that connects an exclusive online shopping experience to stores. Benefits include free delivery and shipping, a 'Spend Analytics” feature, special discounts, deals and tax-exempt shopping.
Special TechSoup offer for a free 180 days membership, and up to $150 in discounts on eligible orders.
Spark Good (walmart.com/sparkgood) is a charitable platform that enables nonprofits to receive donations directly from customers and associates.
Answers about how you can do more with Walmart!"
How to Setup Warehouse & Location in Odoo 17 InventoryCeline George
In this slide, we'll explore how to set up warehouses and locations in Odoo 17 Inventory. This will help us manage our stock effectively, track inventory levels, and streamline warehouse operations.
This presentation includes basic of PCOS their pathology and treatment and also Ayurveda correlation of PCOS and Ayurvedic line of treatment mentioned in classics.
How to Fix the Import Error in the Odoo 17Celine George
An import error occurs when a program fails to import a module or library, disrupting its execution. In languages like Python, this issue arises when the specified module cannot be found or accessed, hindering the program's functionality. Resolving import errors is crucial for maintaining smooth software operation and uninterrupted development processes.
The simplified electron and muon model, Oscillating Spacetime: The Foundation...RitikBhardwaj56
Discover the Simplified Electron and Muon Model: A New Wave-Based Approach to Understanding Particles delves into a groundbreaking theory that presents electrons and muons as rotating soliton waves within oscillating spacetime. Geared towards students, researchers, and science buffs, this book breaks down complex ideas into simple explanations. It covers topics such as electron waves, temporal dynamics, and the implications of this model on particle physics. With clear illustrations and easy-to-follow explanations, readers will gain a new outlook on the universe's fundamental nature.
Exploiting Artificial Intelligence for Empowering Researchers and Faculty, In...Dr. Vinod Kumar Kanvaria
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Liberal Approach to the Study of Indian Politics.pdf
Chapter 6
1. Chapter 6
What are price ceilings and price floors?
What are some examples of each?
How do price ceilings and price floors affect market
outcomes?
How do taxes affect market outcomes?
How does the outcome depend on whether
the tax is imposed on buyers or sellers?
What is the incidence (rate/range of
influence/occurrence) of a tax?
What determines the incidence?
SUPPLY, DEMAND, AND GOVERNMENT POLICIES
2. Government Policies That Alter the
Private Market Outcome
Price Controls
– Price Ceiling: a legal maximum on the price
of a good or service. Example: rent control.
– Price Floor: a legal minimum on the price of
a good or service. Example: minimum wage.
Taxes
– The Government can make buyers or sellers pay a specific
amount on each unit bought/sold.
SUPPLY, DEMAND, AND GOVERNMENT POLICIES
3. EXAMPLE 1: The Market for Apartments
Rental P S
price of
apartments
$800
Equilibrium
without
price D
Q
controls 300
Quantity of
apartments
SUPPLY, DEMAND, AND GOVERNMENT POLICIES
4. How Price Ceilings Affect Market Outcomes
P S
Price
$1000
A price ceiling Ceiling
$800
above the
equilibrium
price is
not binding –
has no effect D
Q
on the market 300
outcome.
SUPPLY, DEMAND, AND GOVERNMENT POLICIES
5. How Price Ceilings Affect Market Outcomes
P
The equilibrium S
price ($800) is
above the
ceiling and $800
therefore illegal.
Price
The ceiling $500
Ceiling
is a binding Shortage
constraint D
on the price, Q
250 400
causes a
shortage.
SUPPLY, DEMAND, AND GOVERNMENT POLICIES
6. How Price Ceilings Affect Market Outcomes
P S
In the long
run, supply
and demand $800
are more
price-elastic. $500
Price
Therefore, the Ceiling
Shortage
shortage D
will be larger. Q
150 450
SUPPLY, DEMAND, AND GOVERNMENT POLICIES
7. Shortages and Rationing
With a shortage, sellers must ration the goods among
buyers.
Some rationing mechanisms: (1) long lines
(2) discrimination according to sellers’ biases
These mechanisms are often unfair, and inefficient:
the goods do not necessarily go to the buyers who
value them most highly.
In contrast, when prices are not controlled,
the rationing mechanism is efficient (the goods
go to the buyers that value them most highly)
and impersonal (and thus fair).
SUPPLY, DEMAND, AND GOVERNMENT POLICIES
8. EXAMPLE 2: The Market for Unskilled Labor
Wage W S
paid to
unskilled
workers
$4
Equilibrium
without
D
price L
controls 500
Quantity of
unskilled workers
SUPPLY, DEMAND, AND GOVERNMENT POLICIES
9. How Price Floors Affect Market Outcomes
W S
A price floor
below the
equilibrium
price is $4
not binding – Price
$3
has no effect floor
on the market
D
outcome. L
500
SUPPLY, DEMAND, AND GOVERNMENT POLICIES
10. How Price Floors Affect Market Outcomes
Labor
The equilibrium W Surplus S
wage ($4) is below Price
$5
the floor and Floor
therefore illegal.
$4
The floor is a
binding constraint
on the wage,
causes a surplus D
(i.e.,unemployment). L
400 550
SUPPLY, DEMAND, AND GOVERNMENT POLICIES
11. The Minimum Wage
Unemployment
W S
Minimum
Minimum wage $5 Wage
laws do not affect
highly skilled $4
workers.
Often, they affect
teen workers.
D
L
400 550
SUPPLY, DEMAND, AND GOVERNMENT POLICIES
12. Price Floors & Ceilings
The market for
P
140 hotel rooms
Determine S
130
effects of:
120
A. $90 price
110
ceiling
100
B. $90 price
floor 90
80 D
C. $120 price
floor 70
60
50
40
0 Q
50 60 70 80 90 100 110 120 130
SUPPLY, DEMAND, AND GOVERNMENT POLICIES
13. A. $90 Price Ceiling The market for
P
140 hotel rooms
S
The price 130
falls to $90. 120
110
Buyers
100
demand Price ceiling
90
120 rooms,
80 D
sellers supply shortage = 30
70
90, leaving a
60
shortage.
50
40
0 Q
50 60 70 80 90 100 110 120 130
SUPPLY, DEMAND, AND GOVERNMENT POLICIES
14. B. $90 Price Floor The market for
P
140 hotel rooms
S
130
Equilibrium
price is above 120
the floor, so the 110
floor is not 100
binding. 90
Price floor
P = $100, 80 D
Q = 100 rooms. 70
60
50
40
0 Q
50 60 70 80 90 100 110 120 130
SUPPLY, DEMAND, AND GOVERNMENT POLICIES
15. C. $120 price floor The market for
P
140 hotel rooms
surplus = 60 S
130
The price
120
rises to $120. Price floor
110
Buyers
100
demand
60 rooms, 90
sellers supply 80 D
120, causing a 70
surplus. 60
50
40
0 Q
50 60 70 80 90 100 110 120 130
SUPPLY, DEMAND, AND GOVERNMENT POLICIES
16. Evaluating Price Controls
Recall one of the Ten Principles of
Economics:
Markets are usually a good way to organize
economic activity.
Prices are the signals that guide the allocation of
society’s resources. This allocation is altered
when policymakers restrict prices.
Price controls often intended to help the poor,
but often hurt more than help.
SUPPLY, DEMAND, AND GOVERNMENT POLICIES
17. Taxes
The Government levies taxes on many goods &
services to raise revenue to pay for national
defense, public schools, etc.
The Government can make buyers or sellers pay
the tax.
The tax can be a % of a good’s price, or a specific
amount for each unit sold.
– For simplicity, we will analyze per-unit taxes only.
SUPPLY, DEMAND, AND GOVERNMENT POLICIES
18. EXAMPLE 3: The Market for Pizza
Equilibrium P
S1
without tax
$10.00
D1
Q
500
SUPPLY, DEMAND, AND GOVERNMENT POLICIES
19. A Tax on Buyers
A tax on
buyers shifts Effects of a $1.50 per
the D curve unit tax on buyers
down by the P
amount of the S1
PB = $11.00
tax. Tax
$10.00
The price PS = $9.50
buyers pay
rises, the price D1
sellers receive D2
falls, Q
430 500
equilibrium Q
falls.
SUPPLY, DEMAND, AND GOVERNMENT POLICIES
20. The Incidence of a Tax:
How the burden of a tax is shared among market
participants
P
As a result of S1
PB = $11.00
the tax, Tax
buyers pay $10.00
$1.00 more, PS = $9.50
and sellers
receive D1
$0.50 less. D2
Q
430 500
SUPPLY, DEMAND, AND GOVERNMENT POLICIES
21. A Tax on Sellers
A tax on Effects of a $1.50 per
sellers shifts unit tax on sellers
the S curve up P S2
by the amount S1
of the tax. PB = $11.00
Tax
$10.00
PS = $9.50
The price buyers
pay rises, the
price sellers D1
receive falls,
equilibrium Q Q
430 500
falls.
SUPPLY, DEMAND, AND GOVERNMENT POLICIES
22. The Outcome Is the Same in Both Cases!
The effects on P and Q, and the tax incidence are the
same whether the tax is imposed on buyers or sellers!
P
What S1
matters is PB = $11.00
Tax
this: $10.00
A tax drives PS = $9.50
a wedge D1
between the
price buyers Q
pay and the 430 500
price sellers
receive. AND GOVERNMENT POLICIES
SUPPLY, DEMAND,
23. Effects of a Tax The market for
P
140 hotel rooms
Suppose the S
130
Government 120
imposes a tax 110
on buyers of
100
$30 per room.
90
Find new
Q, PB, PS, 80 D
and incidence of 70
tax. 60
50
40
0 Q
50 60 70 80 90 100 110 120 130
SUPPLY, DEMAND, AND GOVERNMENT POLICIES
24. A C T I V E L E A R N I N G 2:
The market for
Answers P
140 hotel rooms
S
130
PB = $110
120
Q = 80 PB = 110
100
Tax
PS = $80 90
PS = 80 D
70
Incidence
60
Buyers: $10
50
Sellers: $20 40
0 Q
50 60 70 80 90 100 110 120 130
SUPPLY, DEMAND, AND GOVERNMENT POLICIES
25. Elasticity and Tax Incidence
CASE 1: Supply is more elastic than demand
P It is easier for
sellers than buyers
PB S to leave the
Buyers’ share
market.
of tax burden
Tax Therefore, buyers
Price if no tax bear most of the
Sellers’ share burden of the tax.
PS
of tax burden
D
Q
SUPPLY, DEMAND, AND GOVERNMENT POLICIES
26. Elasticity and Tax Incidence
CASE 2: Demand is more elastic than supply
It is easier for
P buyers than
S
sellers to leave
Buyers’ share
PB the market.
of tax burden
Sellers bear
Price if no tax
Tax most of the
Sellers’ share burden of
of tax burden the tax.
PS
D
Q
SUPPLY, DEMAND, AND GOVERNMENT POLICIES
27. CASE STUDY: Who Pays the Luxury Tax?
1990: Congress adopted a luxury tax on
yachts, private airplanes, furs, expensive cars,
etc.
Goal of the tax: to raise revenue from those
who could most easily afford to pay –
wealthy consumers.
But who really pays this tax?
SUPPLY, DEMAND, AND GOVERNMENT POLICIES
28. CASE STUDY: Who Pays the Luxury Tax?
The market for yachts Demand is
price-elastic.
P
S
In the short run,
Buyers’ share
of tax burden PB supply is inelastic.
Tax Hence,
companies
Sellers’ share
that build
of tax burden PS
D yachts pay
most of
Q the tax.
SUPPLY, DEMAND, AND GOVERNMENT POLICIES
29. CONCLUSION: Government Policies
and the Allocation of Resources
Each of the policies in this chapter affects the
allocation of society’s resources.
– Example 1: A tax on pizza reduces equilibrium Q.
With less production of pizza, resources (workers, ovens,
cheese) will become available to other industries.
– Example 2: A binding minimum wage causes a surplus of
workers, and a waste of resources.
It is important for policymakers to apply such policies
very carefully.
SUPPLY, DEMAND, AND GOVERNMENT POLICIES
30. CHAPTER SUMMARY
A price ceiling is a legal maximum on the price of
a good. An example is rent control. If the price
ceiling is below the equilibrium price, it is binding
and causes a shortage.
A price floor is a legal minimum on the price of a
good. An example is the minimum wage. If the
price floor is above the equilibrium price, it is
binding and causes a surplus. The labor surplus
caused by the minimum wage is unemployment.
SUPPLY, DEMAND, AND GOVERNMENT POLICIES
31. CHAPTER SUMMARY
A tax on a good places a wedge between the price
buyers pay and the price sellers receive, and causes
the equilibrium quantity to fall, whether the tax is
imposed on buyers or sellers.
The incidence of a tax is the division of the burden of
the tax between buyers and sellers, and does not
depend on whether the tax is imposed on buyers or
sellers.
The incidence of the tax depends on the price
elasticities of supply and demand.
SUPPLY, DEMAND, AND GOVERNMENT POLICIES