平狄克微观经济学第六版第九章课后答案

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1、CHAPTER 9THE ANALYSIS OF COMPETITIVE MARKETS With the exception of Chapter 1, Chapter 9 is the most straightforward and easily understood chapter in the text. The chapter begins with a review of consumer and producer surplus in section 9.1. If you have postponed these topics, you should carefully ex

2、plain the definition of each. Section 9.2 discusses the basic concept of efficiency in competitive markets by comparing competitive outcomes with those under market failure. A more detailed discussion of efficiency is presented in Chapter 16. Sections 9.3 to 9.6 present examples of government polici

3、es that cause the market equilibrium to differ from the competitive, efficient equilibrium. The instructor can pick and choose among sections 9.3 to 9.6 depending on time constraints and personal preference. The presentation in each of these sections follows the same format: there is a general discu

4、ssion of why market intervention leads to deadweight loss, followed by the presentation of an important policy example. Each section is discussed in one review question and applied in at least one exercise. Exercise (1 focuses on minimum wages presented in Section 9.3. Exercises (4 and (5 reinforce

5、discussion of price supports and production quotas from Section 9.4. The use of tariffs and quotas, presented in Section 9.5, can be found in Exercises (3, (6, (7, (8, (11, and (12. Taxes and subsidies (Section 9.6 are discussed in Exercises (2, (9, and (14. Exercise (10 reviews natural gas price co

6、ntrols in Example 9.1, a continuation of Example 2.7. Exercise (4 may be compared to Example 9.4 and discussed as an extension of Example 2.2.1. What is meant by deadweight loss? Why does a price ceiling usually result in a deadweight loss?Deadweight loss refers to the benefits lost to either consum

7、ers or producers whenmarkets do not operate efficiently. The term deadweight denotes that these arebenefits unavailable to any party. A price ceiling will tend to result in a deadweightloss because at any price below the market equilibrium price, quantity supplied will bebelow the market equilibrium

8、 quantity supplied, resulting in a loss of surplus toproducers. Consumers will purchase less than the market equilibrium quantity,resulting in a loss of surplus to consumers. Consumers will also purchase less than thequantity they demand at the price set by the ceiling. The surplus lost by consumers

9、and producers is not captured by either group, and surplus not captured by marketparticipants is deadweight loss.2. Suppose the supply curve for a good is completely inelastic. If the government imposed a price ceiling below the market-clearing level, would a deadweight loss result? Explain. When th

10、e supply curve is completely inelastic, the imposition of an effective priceceiling transfers all loss in producer surplus to consumers. Consumer surplusincreases by the difference between the market-clearing price and the price ceilingtimes the market-clearing quantity. Consumers capture all decrea

11、ses in total revenue.Therefore, no deadweight loss occurs.3. How can a price ceiling make consumers better off? Under what conditions might it make them worse off?If the supply curve is perfectly inelastic a price ceiling will increase consumer surplus.If the demand curve is inelastic, price control