管理经济学（第14版） 课件全套 英文版 第1-16章　管理者、利润与市场-政府对企业的监管

Chapter01Managers,Profits,andMarketsMANAGERIALECONOMICSFoundationsofBusinessAnalysisandStrategyFourteenthEditionCHRISTOPHERR.THOMAS©McGrawHillLLC.Allrightsreserved.NoreproductionordistributionwithoutthepriorwrittenconsentofMcGrawHillLLC.LearningOutcomes1.1 Understandwhymanagerialeconomicsreliesonmicroeconomicsandindustrialorganizationtoanalyzebusinesspracticesanddesignbusinessstrategies.1.2 Explainthedifferencebetweeneconomicandaccountingprofitandrelateeconomicprofittothevalueofthefirm.1.3 Describehowseparationofownershipandmanagementcanleadtoaprincipal–agentproblemwhengoalsofownersandmanagersarenotaligned,andmonitoringmanagersiscostlyorimpossibleforowners.1.4 Explainthedifferencebetweenprice-takingandprice-settingfirmsanddiscussthecharacteristicsofthefourmarketstructures.1.5 Discusstheprimaryopportunitiesandthreatspresentedbytheglobalizationofmarketsinbusiness.2ManagerialEconomicsandTheoryManagerialeconomicsappliesmicroeconomictheorytobusinessproblems.Howtouseeconomicanalysistomakedecisionstoachievethefirm’sgoalofprofitmaximization.Economictheoryhelpsmanagersunderstandreal-worldbusinessproblems.Usessimplifyingassumptionstoturncomplexityintorelativesimplicity.3MicroeconomicsMicroeconomicsStudyofbehaviorofindividualconsumers,businessfirms,andmarketsthatcontributestoourunderstandingofbusinesspracticesandtactics.BusinesspracticesortacticsRoutinebusinessdecisionsmanagersmustmaketoearnthegreatestprofitunderprevailingmarketconditions.Usingmarginalanalysis,microeconomicsprovidesthefoundationforunderstandingeverydaybusinessdecisions.4IndustrialOrganizationandStrategicDecisionsIndustrialorganizationSpecializedbranchofmicroeconomicsfocusingonbehaviorandstructureoffirmsandindustries.Providesfoundationforunderstandingstrategicdecisionsthroughapplicationofgametheory.StrategicdecisionsBusinessactionstakentoaltermarketconditionsandbehaviorofrivalsinwaysthatincreaseand/orprotectthestrategicfirm’sprofit.Whilecommonbusinesspracticesarenecessaryforthegoalofprofitmaximization,strategicdecisionsaregenerallyoptimalactionsmanagerscantakeascircumstancespermit.5Figure1.1:EconomicForcesThatPromoteLong-RunProfitabilityAccessthetextalternativeforslideimages.6EconomicCostofResourcesOpportunitycostWhatfirmownersmustgiveuptouseresourcestoproducegoodsandservices.Market-suppliedresourcesOwnedbyothersandhired,rented,orleasedinresourcemarkets.Owner-suppliedresourcesOwnedandusedbythefirm.7TotalEconomicCostTotaleconomiccostSumofopportunitycostsofallresourcesusedbyafirmtoproducegoodsorservices.ExplicitcostsMonetaryopportunitycostsofusingmarket-suppliedresources.ImplicitcostsNonmonetaryopportunitycostsofusingowner-suppliedresources.8ThreeTypesofImplicitCostsOpportunitycostofcashprovidedtoafirmbyitsowners,knownasequitycapital(fundsprovidedtobusinessesbytheowners).Opportunitycostofusinglandorcapitalownedbythefirm.Opportunitycostofowner’stimespentmanagingorworkingforthefirminsomeothercapacity.9Figure1.2:EconomicCostofUsingResourcesAccessthetextalternativeforslideimages.10EconomicProfitVersusAccountingProfitEconomicprofit=Totalrevenue−Totaleconomiccost=Totalrevenue−Explicitcosts−ImplicitcostsAccountingprofit=Totalrevenue−ExplicitcostsAccountingprofitdoesnotsubtractimplicitcostsfromtotalrevenue.Firmownersmustcoverthecostsofallresourcesusedbythefirm,sotheobjectiveistomaximizeeconomicprofit.11MaximizingtheValueofaFirm1ValueofafirmPriceforwhichitcanbesold.Equaltothepresentvalueofexpectedfutureprofits.RiskpremiumAnincreaseinthediscountratetocompensateinvestorsforuncertaintyaboutfutureprofits.Thelargertherisk,thehighertheriskpremium,andthelowerthefirm’svalue.12MaximizingtheValueofaFirm2Maximizefirm’svaluebymaximizingprofitineachtimeperiod.Costandrevenueconditionsmustbeindependentacrosstimeperiods.Valueofafirm=13SomeCommonMistakesManagersMakeNeverincreaseoutputsimplytoreduceaveragecosts.Pursuitofmarketshareusuallyreducesprofit.Focusingonprofitmarginwon’tmaximizetotalprofit.Maximizingtotalrevenuereducesprofit.Cost-pluspricingformulasdon’tproduceprofit-maximizingprices.14Principal–AgentRelationshipRelationshipformedwhenabusinessowner(theprincipal)entersanagreementwithanexecutivemanager(theagent)whosejobistoformulateandimplementtacticalandstrategicbusinessdecisionsthatwillfurthertheobjectivesofthebusinessowner(theprincipal).Aprincipal–agentproblemarisesbetweenafirm’sownerandmanagerwhentwoconditionsaremet:Theobjectivesoftheownerandmanagerarenotaligned.Theownerfindsiteithertoocostlyorimpossibleinthecaseofmoralhazardtoperfectlymonitorthemanagertoblockallmanagementdecisionsthatmightbeharmfultotheownerofthebusiness.15SeparationofOwnershipandControlPrincipal–agentproblemAmanagertakesanactionormakesadecisionthatadvancestheinterestsofthemanagerbutreducesthevalueofthefirm.CompletecontractAnemploymentcontractthatprotectsownersfromeverypossibledeviationbymanagersfromvalue-maximizingdecisions.HiddenactionsActionsordecisionstakenbymanagersthatcannotbeobservedbyownersforanyfeasibleamountofmonitoringeffort.MoralhazardAsituationinwhichmanagerstakehiddenactionsthatharmtheownersofthefirmbutfurthertheinterestsofthemanagers.16CorporateControlMechanismsInternalcontrolmechanismsRequiremanagerstoholdstipulatedamountoffirm’sequity.Increasepercentageofoutsidersservingonboardofdirectors.Financecorporateinvestmentswithdebtinsteadofequity.ExternalmechanismCorporatetakeovers.17Price-TakersVersusPrice-SettersPrice-takingfirmCannotsetpriceofitsproduct.Priceisdeterminedstrictlybymarketforcesofdemandandsupply.Price-settingfirmCansetpriceofitsproduct.Hasadegreeofmarketpower,whichistheabilitytoraisepricewithoutlosingallsales.18WhatIsaMarket?Amarketisanyarrangementthroughwhichbuyersandsellersexchangeanythingofvalue.Marketsreducetransactioncosts,

whicharethecostsofmakingatransactionhappen,otherthanthepriceofthegoodorserviceitself.19MarketStructuresMarketcharacteristicsthatdeterminetheeconomicenvironmentinwhichafirmoperates.Numberandsizeoffirmsinthemarket.Degreeofproductdifferentiationamongcompetingfirms.Likelihoodofnewfirmsenteringmarketwhenincumbentfirmsareearningeconomicprofits.20PerfectCompetitionLargenumberofrelativelysmallfirms.Undifferentiatedproduct.Price-takerswithnomarketpower.Nobarrierstoentry.Anyeconomicprofitearnedwillvanishasnewfirmsenter.21MonopolySinglefirm.Producesproductwithnoclosesubstitutes.Protectedbyabarriertoentry.Allowsthemonopolisttoraiseitspricewithoutconcernthateconomicprofitswillattractnewfirms.22MonopolisticCompetitionLargenumberofrelativelysmallfirms.Differentiatedproductsgivethemonopolisticcompetitorsomedegreeofmarketpower.Price-setters.Nobarrierstoentry.Ensuresanyeconomicprofitswilleventuallybebidawaybynewentrants.23OligopolyFewfirmsproduceallormostofmarketoutput.Profitsareinterdependent.Actionstakenbyanyonefirmwillaffectsalesandprofitsoftheotherfirms.24GlobalizationofMarketsEconomicintegrationofmarketslocatedinnationsaroundtheworld.Providesopportunitytosellmoregoodsandservicestoforeignbuyers.Presentsthreatofincreasedcompetitionfromforeignproducers.25Summary1Managerialeconomicsappliesconcepts/theoriesfrommicroeconomicsandindustrialorganization.Marginalanalysisprovidesthefoundationforeverydaybusinesspracticesortactics.Opportunitycostofusinganyresourceiswhatthefirmownersmustgiveuptousetheresource.Unlikeeconomicprofit,accountingprofitdoesnotsubtractimplicit(opportunity)costsfromtotalrevenue.Withtheseparationofownershipandmanagement,aprincipal–agentproblemcanarisebecauseownerscannotbecertainthatmanagersaremakingdecisionstomaximizethevalueofthefirm.26Summary2Globalizationrepresentstheeconomicintegrationofmarketslocatedinnationsaroundtheworld.Forprice-takingfirms,priceisdeterminedsolelybymarketforcesofsupplyanddemand,whileprice-settershavesomedegreeofmarketpowertosetprice.27EndofMainContent©McGrawHillLLC.Allrightsreserved.NoreproductionordistributionwithoutthepriorwrittenconsentofMcGrawHillLLC.AccessibilityContent:TextAlternativesforImages29Figure1.1:EconomicForcesThatPromoteLong-RunProfitability-TextAlternativeReturntoparent-slidecontainingimages.Thediagramhassevenblocksattheleftlabeledfromtoptobottomasfollows:Fewclosesubstitutes,strongentrybarriers,weakrivalrywithinthemarket,thelowmarketpowerofinputsuppliers,thelowmarketpowerofconsumers,abundantcomplementaryproducts,andlimitedharmfulgovernmentintervention.Theseboxesarelinkedtoacommonboxlabeledlong-runprofitability,attheright.Returntoparent-slidecontainingimages.30Figure1.2:EconomicCostofUsingResources

-TextAlternativeReturntoparent-slidecontainingimages.Twoboxeslabeled'Explicitcostsofmarket-suppliedresources,themonetarypaymentstoresourceowners'and'Implicitcostsofowner-suppliedresources,thereturnsforgonebynottakingtheowners’resourcestomarket'areaddedtogetherwhichisrepresentedbyaplussymbolinbetween.Thisequalsaboxlabeled'Totaleconomiccost,thetotalopportunitycostsofbothkindsofresources.'Returntoparent-slidecontainingimages.31Chapter02Demand,Supply,andMarketEquilibriumMANAGERIALECONOMICSFoundationsofBusinessAnalysisandStrategyFourteenthEditionCHRISTOPHERR.THOMAS©McGrawHillLLC.Allrightsreserved.NoreproductionordistributionwithoutthepriorwrittenconsentofMcGrawHillLLC.LearningObjectives2.1Identifydemandfunctionsanddistinguishbetweenachangeindemandandachangeinquantitydemanded.2.2Identifysupplyfunctionsanddistinguishbetweenachangeinsupplyandachangeinquantitysupplied.2.3Explainwhymarketequilibriumoccursatthepriceforwhichquantitydemandedequalsquantitysupplied.2.4Measuregainsfrommarketexchangeusingconsumersurplus,producersurplus,andsocialsurplus.2.5Predicttheimpactonequilibriumpriceandquantityofshiftsindemandorsupply.2.6Examinetheimpactofgovernment-imposedpriceceilingsandpricefloors.33DemandQuantitydemanded(Qd)Amountofagoodorserviceconsumersarewillingandabletopurchaseduringagivenperiodoftime.34GeneralDemandFunctionSixvariablesthatinfluenceQdPriceofgoodorservice(P).Incomesofconsumers(M).Pricesofrelatedgoodsandservices(PR).Tastepatternsofconsumers(T).Expectedfuturepriceofproduct(PE).Numberofconsumersinmarket(N).Generaldemandfunction:

Qd=f(P,M,PR,T,PE,N)35SlopeParameters—DemandQd=a+bP+cM+dPR+eT+fPE+gNb,c,d,e,f,andgareslopeparameters.MeasureeffectonQd

ofchangingoneofthevariableswhileholdingtheothersconstant.SignofparametershowshowvariableisrelatedtoQd.Positivesignindicatesdirectrelationship.Negativesignindicatesinverserelationship.36NormalVersusInferiorGoodsNormalgoodAgoodorserviceforwhichanincrease(decrease)inincomecausesconsumerstodemandmore(less)ofthegood,holdingallothervariablesinthegeneraldemandfunctionconstant.InferiorgoodAgoodorserviceforwhichanincrease(decrease)inincomecausesconsumerstodemandless(more)ofthegood,allotherfactorsheldconstant.37SubstituteVersusComplementGoodsSubstitutesTwogoodsaresubstitutesifanincrease(decrease)inthepriceofonegoodcausesconsumerstodemandmore(less)oftheothergood,holdingallotherfactorsconstant.ComplementsTwogoodsarecomplementsifanincrease(decrease)inthepriceofonegoodcausesconsumerstodemandless(more)oftheothergood,allotherthingsheldconstant.38Table2.1:SummaryoftheGeneral(Linear)DemandFunctionVariableRelationtoQdSignofSlopeParameterPInverseb=∆Qd∕∆PisnegativeMDirectfornormalgoodsInverseforinferiorgoodsc=∆Qd∕∆Mispositivec=∆Qd∕∆MisnegativePRDirectforsubstitutesInverseforcomplementsd=∆Qd∕∆PRispositived=∆Qd∕∆PRisnegative𝒯Directe=∆Qd∕∆𝒯ispositivePEDirectf=∆Qd∕∆PEispositiveNDirectg=∆Qd∕∆Nispositive39DirectDemandFunctionThedirectdemandfunction,orsimplydemand,showshowquantitydemanded,Qd,isrelatedtoproductprice,P,whenallothervariablesareheldconstant:

Qd=f(P)Ademandscheduleisatableshowingalistofpossibleproductpricesandthecorrespondingquantitiesdemanded.40Table2.2:DemandSchedulefortheDemandFunctionD0:Qd=1,400−10PPriceQuantityDemanded$14001202001004008060060800401,000201,20041DemandCurveThedemandcurveisagraphshowingtherelationbetweenquantitydemandedandpricewhenallothervariablesinfluencingquantitydemandedareheldconstant.Apointonadirectdemandcurveshowseither:MaximumamountofagoodthatwillbepurchasedforagivenpriceMaximumpriceconsumerswillpayforaspecificamountofthegood(demandprice)42LawofDemandLawofDemandQdincreaseswhenPfalls,allelseconstant.Qd

decreaseswhenPrises,allelseconstant.

Qd/Pmustbenegative.43Figure2.1:ADemandCurve,Qd=1,400−10PAccessthetextalternativeforslideimages.44InverseDemandFunctionTraditionally,price(P)isplottedontheverticalaxisandquantitydemanded(Qd)isplottedonthehorizontalaxis.Theequationplottedistheinversedemandfunction,P=f(Qd).45GraphingDemandCurvesChangeinquantitydemandedOccursonlywhenpricechanges.Movementalongdemandcurve.ChangeindemandOccurswhenoneoftheothervariables,ordeterminantsofdemand,changes.Demandcurveshiftsrightwardforanincreaseorleftwardforadecrease.46Table2.3:ThreeDemandSchedules(1)(2)(3)(4)PriceD0:Qd=1,400–10PQuantityDemanded(M=$60,000)D1:Qd=1,600–10PQuantityDemanded(M=$64,000)D2:Qd=1,000–10PQuantityDemanded(M=$52,000)$140020001202004000100400600080600800200608001,000400401,0001,200600201,2001,40080047Figure2.2:ShiftsinDemandAccessthetextalternativeforslideimages.48Table2.4:SummaryofDemandShiftsDeterminantsofDemandDemandIncreasesaDemandDecreasesbSignofSlopeParameterc1.Income(M)NormalgoodMrisesMfallsc>0InferiorgoodMfallsMrisesc<02.Priceofrelatedgood(PR)SubstitutegoodPRrisesPRfallsd>0ComplementgoodPRfallsPRrisesd<03.Consumertastes(T)TrisesTfallse>04.Expectedprice(PE)PErisesPEfallsf>05.Numberofconsumers(N)NrisesNfallsg>0aDemandincreaseswhenthedemandcurveshiftsrightward.bDemanddecreaseswhenthedemandcurveshiftsleftward.cThiscolumngivesthesignofthecorrespondingslopeparameterinthegeneraldemandfunction.49SupplyQuantitysupplied(Qs)Amountofagoodorserviceofferedforsaleduringagivenperiodoftime.50GeneralSupplyFunctionSixvariablesthatinfluenceQs:Priceofgoodorservice(P).Inputprices(PI).Pricesofgoodsrelatedinproduction(Pr).Technologicaladvances(T).Expectedfuturepriceofproduct(Pe).Numberoffirmsproducingproduct(F).Generalsupplyfunction:Qs=f(P,PI,Pr,T,Pe,F)51SlopeParameters—SupplyQs=h+kP+lPI+mPr+nT+rPe+sFk,l,m,n,r,and

s

areslopeparameters.Measureeffecton

Qs

ofchangingoneofthevariableswhileholdingtheothersconstant.Signofparametershowshowvariableisrelatedto

Qs.Positivesignindicatesdirectrelationship.Negativesignindicatesinverserelationship.52SubstitutesVersusComplementsinProductionSubstitutesinproductionGoodsforwhichanincreaseinthepriceofonegoodrelativetothepriceofanothergoodcausesproducerstoincreaseproductionofthenowhigher-pricedgoodanddecreaseproductionoftheothergood.ComplementsinproductionGoodsforwhichanincreaseinthepriceofonegood,relativetothepriceofanothergood,causesproducerstoincreaseproductionofbothgoods.53TechnologyThestateofknowledgeconcerningthecombinationofresourcestoproducegoodsandservices.54Table2.5:SummaryoftheGeneral(Linear)SupplyFunctionVariableRelationtoQsSignofSlopeParameterPDirectk=∆Qs∕∆PispositivePIInverseI=∆Qs∕∆PIisnegativePrInverseforsubstitutesDirectforcomplementsm=∆Qs∕∆Prisnegativem=∆Qs∕∆PrispositiveTDirectn=∆Qs∕∆TispositivePeInverser=∆Qs∕∆PeisnegativeFDirects=∆Qs∕∆Fispositive55DirectSupplyFunctionThe

directsupplyfunction,orsimplysupply,showshowquantitysupplied,Qs,

isrelatedtoproductprice,P,whenallothervariablesareheldconstant:

Qs=f(P)Thesupplyscheduleisatableshowingalistofpossibleproductpricesandthecorrespondingquantitiessupplied.56Table2.6:TheSupplySchedulefortheSupplyFunctionS0:Qs=−400+20PPriceQuantitySupplied$1402,4001202,0001001,600801,200608004040020057SupplyCurveAsupplycurveisagraphshowingtherelationbetweenquantitysuppliedandprice,whenallothervariablesinfluencingquantitysuppliedareheldconstant.Apointonasupplycurveshowseither:MaximumamountofagoodthatwillbeofferedforsaleatagivenpriceMinimumpricenecessarytoinduceproducerstovoluntarilyofferagivenquantityforsale(supplyprice)58Figure2.3:ASupplyCurve,Qs=−400+20PAccessthetextalternativeforslideimages.59InverseSupplyFunctionTraditionally,price(P)isplottedontheverticalaxis,andquantitysupplied(Qs)isplottedonthehorizontalaxis.Theequationplottedistheinversesupplyfunction,

P=f(Qs).60GraphingSupplyCurvesChangeinquantitysuppliedOccursonlywhenpricechanges.Movementalongsupplycurve.ChangeinsupplyOccurswhenoneoftheothervariables,ordeterminantsofsupply,changes.Supplycurveshiftsrightwardforanincreaseorleftwardforadecrease.61Table2.7:ThreeSupplySchedules(1)(2)(3)(4)PriceS0:Qs=−400+20PQuantitySupplied(PI=$100,F=25)S1:Qs=20PQuantitySupplied(PI=$60,F=25)S2:Qs=−700+20PQuantitySupplied(PI=$100,F=10)$1402,4002,8002,1001202,0002,4001,7001001,6002,0001,300801,2001,600900608001,20050040400800100200400062Figure2.4:ShiftsinSupplyAccessthetextalternativeforslideimages.63Table2.8:SummaryofSupplyShiftsDeterminantsofsupplySupplyincreasesaSupplydecreasesbSignofslopeparameterc1.Priceofinputs(PI)PIfallsPIrisesl<02.Priceofgoodsrelatedinproduction(Pr)SubstitutegoodPrfallsPrrisesm<0ComplementgoodPrfallsPrfallsm>03.Stateoftechnology(T)TrisesTfallsn>04.Expectedprice(Pe)PefallsPerisesr<05.Numberoffirmsorproductivecapacityinindustry(F)FrisesFfallss>0aSupplyincreaseswhenthesupplycurveshiftsrightward.bSupplydecreaseswhenthesupplycurveshiftsleftward.cThiscolumngivesthesignofthecorrespondingslopeparameterinthegeneralsupplyfunction.64MarketEquilibriumEquilibriumpriceandquantityaredeterminedbytheintersectionofdemandandsupplycurves.Atthepointofintersection,Qd=Qs.Consumerscanpurchasealltheywishandproducerscansellalltheywishatthemarket-clearingprice,orequilibriumprice.65Table2.9:MarketEquilibrium(1)(2)(3)(4)PriceS0QuantitySuppliedQs=−400+20PD0QuantityDemandedQd=1,400−10PExcessSupply(+)orExcessDemand(–)Qs−Qd$1402,4000+2,4001202,000200+1,8001001,600400+1,200801,200600+600608008000404001200-1,20066Figure2.5:MarketEquilibriumAccessthetextalternativeforslideimages.67ExcessSupplyandExcessDemandExcesssupply(surplus)Existswhenquantitysuppliedexceedsquantitydemanded.Excessdemand(shortage)Existswhenquantitydemandedexceedsquantitysupplied.68ValueofMarketExchangeTypically,consumersvaluethegoodstheypurchasebyanamountthatexceedsthepurchasepriceofthegoods.Economicvalue:Maximumamountanybuyerinthemarketiswillingtopayfortheunit,whichismeasuredbythedemandpricefortheunitofthegood.69MeasuringtheValueofMarketExchangeConsumersurplusDifferencebetweentheeconomicvalueofagood(itsdemandprice)andthemarketpricetheconsumermustpay.ProducersurplusForeachunitsupplied,differencebetweenthemarketpriceandtheminimumpriceproducerswouldaccepttosupplytheunit(itssupplyprice).SocialsurplusSumofconsumerandproducersurplus.Areabelowdemandandabovesupplyovertherelevantrangeofoutput.70Figure2.6:MeasuringtheValueofMarketExchangeAccessthetextalternativeforslideimages.71ChangesinMarketEquilibriumQualitativeforecastPredictsonlythedirectioninwhichaneconomicvariablewillmove.QuantitativeforecastPredictsboththedirectionandthemagnitudeofthechangeinaneconomicvariable.72Figure2.7:DemandShifts(SupplyConstant)Accessthetextalternativeforslideimages.73Figure2.8:SupplyShifts(DemandConstant)Accessthetextalternativeforslideimages.74SimultaneousShiftsWhendemandandsupplyshiftsimultaneously:Wecanpredicteitherthedirectioninwhichpricechangesorthedirectioninwhichquantitychanges,butnotboth.Thechangeinequilibriumpriceorquantityissaidtobeindeterminatewhenthedirectionofchangedependsontherelativemagnitudesbywhichdemandandsupplyshift.75Figure2.9:ShiftsinBothDemandandSupply,DemandandSupplyBothIncreaseAccessthetextalternativeforslideimages.76Figure2.10:SummaryofSimultaneousShiftsinDemandandSupply,theFourPossibleCasesAccessthetextalternativeforslideimages.77Figure2.11:DemandandSupplyforAirTravelAccessthetextalternativeforslideimages.78CeilingandFloorPricesCeilingpriceMaximumpricethegovernmentpermitssellerstochargeforagood.Whentheceilingpriceisbelowequilibrium,ashortageoccurs.FloorpriceMinimumpricethegovernmentpermitssellerstochargeforagood.Whenthefloorpriceisaboveequilibrium,asurplusoccurs.79Figure2.12:CeilingandFloorPricesAccessthetextalternativeforslideimages.80Summary1Sixvariablesinfluencedemand:good’sprice,income,pricesofrelatedgoods,consumers’tastes,expectedfutureprice,andnumberofconsumers.Lawofdemandstatesthatquantitydemandedincreases(decreases)whenpricefalls(rises),allelseconstant.Sixvariablesinfluencesupply:good’sprice,inputprices,pricesofgoodsrelatedinproduction,producers’expectationoffutureprice,numberoffirms.Equilibriumpriceandquantityaredeterminedbyintersectionofsupplyanddemandcurves.81Summary2Consumersurplusarisesbecausetheequilibriumpriceconsumerspayislessthanthevaluetheyplaceontheunitstheypurchase.Producersurplusarisesbecauseequilibriumpriceisgreaterthantheminimumpriceproducerswouldbewillingtoaccepttoproduce.Socialsurplus:sumofconsumersurplusandproducersurplus.Whenbothsupplyanddemandshiftsimultaneously,onecanpredicteitherthedirectionofchangeinpriceorthedirectionofchangeinquantity,butnotboth.Aceilingprice(belowequilibrium)resultsinashortage;afloorprice(aboveequilibrium)resultsinasurplus.82EndofMainContent©McGrawHillLLC.Allrightsreserved.NoreproductionordistributionwithoutthepriorwrittenconsentofMcGrawHillLLC.AccessibilityContent:TextAlternativesforImages84Figure2.1:ADemandCurve,Qd=1,400−10P

-TextAlternativeReturntoparent-slidecontainingimages.Theverticaly-axisislabeledpriceindollarsrangingfrom0to160inincrementsof20units.Thehorizontalx-axisislabeledquantitydemanded(Qsubscriptd)rangingfrom0to1,600inincrementsof200units.Threelinesareplottedonthegraphlabeledfromthelefttotherightasfollows:Dsubscript2,Dnaught,andDsubscript1.LineDsubscript2startsat(195,82),extendsdownwardtoreach(500,50)andendsat(1,000,0).LineDnaughtstartsat(195,121),extendsdownwardtoreach(600,80),andendsat(1,400,0).LineDsubscript1startsat(195,143),extendsdownwardtoreach(800,82),andendsat(1,600,0).Anarrowsegmentlabeled'Demanddecrease'isdrawnwhoseendpointsareat(800,60)and(400,60).Anotherarrowlabeled'Demandincrease'isdrawnwhoseendpointsareat(600,80)and(800,80).Notethattheabove-mentionedcoordinatevaluesareapproximate.Returntoparent-slidecontainingimages.85Figure2.2:ShiftsinDemand-TextAlternativeReturntoparent-slidecontainingimages.Theverticaly-axisislabeledpriceindollarsrangingfrom0to160inincrementsof20units.Thehorizontalx-axisislabeledquantitydemanded(Qsubscriptd)rangingfrom0to1,600inincrementsof200units.Threelinesareplottedonthegraphlabeledfromthelefttotherightasfollows:Dsubscript2,Dnaught,andDsubscript1.LineDsubscript2startsat(195,82),extendsdownwardtoreach(500,50)andendsat(1,000,0).LineDnaughtstartsat(195,121),extendsdownwardtoreach(600,80),andendsat(1,400,0).LineDsubscript