1. chương 4
1.1. Markets and Competition
1.1.1. Market
1.1.1.1. Buyers as a group
1.1.1.2. Sellers as a group
1.1.2. Perfectly competitive market
1.1.2.1. All goods are exactly the same
1.1.3. Competitive market
1.1.3.1. Many buyers and many sellers, each has a negligible impact on market price
1.2. Demand
1.2.1. Quantity demanded
1.2.1.1. Amount of a good that buyers are willing and able to purchase
1.2.2. Law of demand
1.2.2.1. Other things equal
1.2.2.2. When the price of a good rises, the quantity demanded of the good falls
1.2.2.3. When the price falls, the quantity demanded rises
1.2.3. Demand curse
1.2.3.1. Shift -1
1.2.3.1.1. Shows how price affects quantity demanded, other things being equal
1.2.3.2. Shift -2
1.2.3.2.1. Number of buyers(1) Income(2) Prices of related goods(3) Tastes(4) Expectations(5)
2. chương 5
2.1. Elasticity
2.1.1. Measure of the responsiveness of Qd or Qs to a change in one of its determinants
2.2. Price elasticity of demand
2.2.1. The Variety of Demand Curves – 1
2.2.1.1. Demand is elastic
2.2.1.1.1. Price elasticity of demand > 1
2.2.1.2. Demand is inelastic
2.2.1.2.1. Price elasticity of demand < 1
2.2.1.3. Demand has unit elasticity
2.2.1.3.1. Price elasticity of demand = 1
2.2.2. The Variety of Demand Curves – 2
2.2.2.1. Demand is perfectly inelastic
2.2.2.1.1. Price elasticity of demand = 0 Demand curve is vertical
2.2.2.2. Demand is perfectly elastic
2.2.2.2.1. Price elasticity of demand = infinity Demand curve is horizontal
2.2.2.3. The flatter the demand curve
2.2.2.3.1. The greater the price elasticity of demand
3. chương 6
3.1. Supply, Demand, and Government Policies
3.1.1. Government Policies
3.1.1.1. Economists as policy advisers
3.1.1.2. Policies
3.1.2. Controls on Prices
3.1.2.1. Price ceiling
3.1.2.2. Price floor
3.1.3. Shortages and Rationing
3.1.3.1. Because of shortage
3.1.3.2. Some rationing mechanisms
3.1.4. Minimum Wage Laws
3.1.4.1. Shift 1
3.1.4.1.1. The minimum wage has its greatest impact on the market for teenage labor
3.1.4.2. Shift 2
3.1.4.2.1. Long-run effects
3.1.4.2.2. Advocates of the minimum wage
3.1.4.3. Shift 3
3.1.4.3.1. Opponents of the minimum wage: not the best way to combat poverty
3.1.5. Evaluating Price Controls
3.1.5.1. Markets are usually a good way to organize economic activity
3.1.5.2. Governments can sometimes improve market outcomes
3.1.6. Taxes
3.1.6.1. Government uses taxes
3.1.6.2. Tax incidence
3.1.7. Elasticity and Tax Incidence
3.1.7.1. When a good is taxed
3.1.7.1.1. Buyers and sellers of the good share the burden of the tax
3.1.7.1.2. Depends on the elasticity of demand and elasticity of supply
4. chương 7
4.1. Consumers, Producers, and the Efficiency of Markets
4.1.1. Welfare Economics
4.1.1.1. Allocation of resources refers to
4.1.1.2. Welfare economics
4.1.2. Consumer Surplus
4.1.2.1. Shift -1
4.1.2.1.1. Willingness to pay, WTP
4.1.2.1.2. Consumer surplus, CS = WTP – P
4.1.2.2. Shift2
4.1.2.2.1. Total consumer surplus
4.1.3. Producer Surplus
4.1.3.1. Shift 1
4.1.3.1.1. Cost
4.1.3.1.2. Willingness to sell, WTS
4.1.3.2. Shift 2
4.1.3.2.1. Producer surplus, PS = P - cost
4.1.3.3. Shift 3
4.1.3.3.1. Producer surplus, PS = P - cost
4.1.4. The Benevolent Social Planner
4.1.4.1. Shift 1
4.1.4.1.1. The benevolent social planner
4.1.4.2. Shift 2
4.1.4.2.1. Allocation of resources – desirable
4.1.5. Market Efficiency
4.1.5.1. Shift 1
4.1.5.1.1. Total surplus = CS + PS
4.1.5.2. Shift 2
4.1.5.2.1. Efficiency
4.1.5.2.2. Equality
4.1.6. Market’s Allocation of Resources
4.1.6.1. Allocate the supply of goods to the buyers who value them most, as measured by their WTP
4.1.6.2. Allocate the demand for goods to the sellers who can produce them at the lowest cost
4.1.6.3. Produce the quantity of goods that maximizes the sum of consumer and producer surplus
4.1.7. Market Efficiency & Market Failure
4.1.7.1. Shift 1
4.1.7.1.1. Forces of supply and demand
4.1.7.1.2. Assumptions about how markets work
4.1.7.1.3. When these assumptions do not hold
4.1.7.2. Shift 2
4.1.7.2.1. Market failures