微观经济学（N. Gregory Mankiw）教学课件ch06.pdfVIP

C H A P T E R 6 Supply, Demand, and Government Policies P R I N C I P L E S O F Economics N. Gregory Mankiw bannannan@dufe.edu.cn © 2009 South- Western, a part of Cengage Learning, all rights reserved  According to an old quip, even a parrot can become an economist simply by learning to say “supply and demand”.  In a free, unregulated market system, market forces establish equilibrium prices and equilibrium quantities.  We analyze various types of government policy using the tools of supply and demand. SUPPLY, DEMAND, AND GOVERNMENT POLICIES 1 Controls on Prices  Price controls are usually enacted when policy makers believe that the market price of a good or service is unfair to buyers or sellers.  Price is determined by government not by market. Price Ceiling Price Floor SUPPLY, DEMAND, AND GOVERNMENT POLICIES 2 Controls on Prices  Price Ceiling a legal maximum on the price at which a good can be sold To limit the price increasing of some goods Price Floor a legal minimum on the price at which a good can be sold To support some industry, e.g. agriculture SUPPLY, DEMAND, AND GOVERNMENT POLICIES 3 How Price Ceilings Affect Market Outcomes  Two outcomes are possible when the government imposes a price ceiling: The price ceiling is above the equilibrium price. The price ceiling is below the equilibrium price.  Which one is binding? SUPPLY, DEMAND, AND GOVERNMENT POLICIES 4 How Price Ceilings Affect Market Outcomes P S