,Consumers, Producers, and the Efficiency of Markets,Chapter 7,Copyright 2001 by Harcourt, Inc. All rights reserved. Requests for permission to make copies of any part of the work should be mailed to: Permissions Department, Harcourt College Publishers, 6277 Sea Harbor Drive, Orlando, Florida 32887-6777.,Revisiting the Market Equilibrium,Do the equilibrium price and quantity maximize the total welfare of buyers and sellers?均衡与福利最大化Market equilibrium reflects the way markets allocate scarce resources. Whether the market allocation is desirable is determined by welfare economics.,Welfare Economics 福利经济学,Welfare economics is the study of how the allocation of resources affects影响 economic well-being. Buyers and sellers receive benefits收益 from taking part in 参与the market. The equilibrium in a market maximizes the total welfare of buyers and sellers.,Welfare Economics,Equilibrium in the market results in maximum benefits, and therefore maximum total welfare for both the consumers and the producers of the product. 均衡是收益最大化的结果，因而，此时产品的消费者和生产者的福利达到了最大化。,Welfare Economics,Consumer surplus消费者剩余 measures economic welfare经济福利 from the buyers side. Producer surplus生产者剩余 measures economic welfare from the sellers side.,Consumer Surplus,Willingness to pay 支付意愿is the maximum price that a buyer is willing and able to pay for a good. It measures how much the buyer values买者评价的价值 the good or service.,Consumer Surplus,Consumer surplus is the amount a buyer is willing to pay for a good minus减去 the amount the buyer actually pays for it. 消费者剩余意愿支付实际支付,Four Possible Buyers Willingness to Pay.,Consumer Surplus,The market demand curve depicts描述 the various quantities that buyers would be willing and able to purchase at different prices.,Four Possible Buyers Willingness to Pay.,Measuring Consumer Surplus with the Demand Curve.,Price of Album,50,70,80,0,$100,1,2,3,4,Quantity of Albums,Measuring Consumer Surplus with the Demand Curve.,Price of Album,50,70,80,0,$100,1,2,3,4,Quantity of Albums,Demand,Price = $80,Measuring Consumer Surplus with the Demand Curve.,Price of Album,50,70,80,0,$100,1,2,3,4,Quantity of Albums,Demand,Price = $70,Measuring Consumer Surplus with the Demand Curve,The area below the demand curve and above the price measures the consumer surplus in the market. 消费者剩余是需求曲线下方、价格以上的区域。,How the Price Affects Consumer Surplus.,Quantity,Price,0,Demand,Copyright 2001 by Harcourt, Inc. All rights reserved,Initial consumer surplus,Consumer Surplus and Economic Well-Being,Consumer surplus, the amount that buyers are willing to pay for a good minus the amount they actually pay for it, measures the benefit that buyers receive from a good as the buyers themselves perceive it作为买者的自我感觉.,Producer Surplus,Producer surplus is the amount a seller is paid minus the cost of production. It measures the benefit to sellers participating in参与 a market. 生产者剩余产品卖价生产成本,The Costs of Four Possible Sellers.,Producer Surplus and the Supply Curve,Just as consumer surplus is related to the demand curve, producer surplus is closely related to the supply curve. At any quantity, the price given by the supply curve shows the cost of the marginal seller边际买主, the seller who would leave the market first if the price were any lower.,Supply Schedule for the Four Possible Sellers.,Producer Surplus and the Supply Curve.,Quantity of Houses Painted,Price of House Painting,500,800,$900,0,600,1,2,3,4,Supply,The area below the price and above the supply curve measures the producer surplus in a market. 价格下方与供给曲线上方的区域。,Producer Surplus and the Supply Curve,Measuring Producer Surplus with the Supply Curve.,Quantity of Houses Painted,Price of House Painting,500,800,$900,0,600,1,2,3,4,Supply,Price = $600,Measuring Producer Surplus with the Supply Curve.,Quantity of Houses Painted,Price of House Painting,500,800,$900,0,600,1,2,3,4,Supply,Price = $800,How Price Affects Producer Surplus.,Quantity,Price,0,Supply,Initial Producer surplus,Market Efficiency,Consumer surplus and producer surplus may be used to address the following question:Is the allocation of resources determined by free markets in any way desirable令人满意的?,Economic Well-Being and Total Surplus,and,Economic Well-Being and Total Surplus,or,Market Efficiency,Market efficiency is achieved when the allocation of resources maximizes total surplus.,Market Efficiency,In addition to market efficiency, a social planner社会规划者 might also care about equity公平 the fairness of the distribution of well-being among the various buyers and sellers.,Evaluating the Market Equilibrium.,Price,Equilibrium price,0,Quantity,Equilibrium quantity,A,Supply,C,B,Demand,D,E,Consumer and Producer Surplus in the Market Equilibrium.,Price,Equilibrium price,0,Quantity,Equilibrium quantity,A,Supply,C,B,Demand,D,E,Producer surplus,Consumer surplus,Three Insights Concerning Market Outcomes,