microeconomictheeconomicproblem(编辑修改稿)

microeconomictheeconomicproblem(编辑修改稿)内容摘要：

Gains from Trade 169。 2020 Pearson AddisonWesley Figure shows the gains from trade. Joe initially produces at point A on his PPF. Liz initially produces at point A on her PPF. Gains from Trade 169。 2020 Pearson AddisonWesley Joe’s opportunity cost of producing a salad is less than Liz’s. So Joe has a parative advantage in producing salad. Gains from Trade 169。 2020 Pearson AddisonWesley Liz’s opportunity cost of producing a smoothie is less than Joe’s. So Liz has a parative advantage in producing smoothies. Gains from Trade 169。 2020 Pearson AddisonWesley Joe specializes in producing salad and he produces 30 salads an hour at point B on his PPF. Gains from Trade 169。 2020 Pearson AddisonWesley Liz specializes in producing smoothies and produces 30 smoothies an hour at point B on her PPF. Gains from Trade 169。 2020 Pearson AddisonWesley They trade salads for smoothies along the red “Trade line.” The price of a salad is 2 smoothies or the price of a smoothie is 189。 of a salad. Gains from Trade 169。 2020 Pearson AddisonWesley Joe buys smoothies from Liz and moves to point C—a point outside his PPF. Liz buys salads from Joe and moves to point C—a point outside her PPF. Gains from Trade 169。 2020 Pearson AddisonWesley To reap the gains from trade, the choices of individuals must be coordinated. To make coordination work, four plimentary social institutions have evolved over the centuries:  Firms  Markets  Property rights  Money Economic Coordination 169。 2020 Pearson AddisonWesley A firm is an economic unit that hires factors of production and anizes those factors to produce and sell goods and services. A market is any arrangement that enables buyers and sellers to get information and do business with each other. Property rights are the social arrangements that govern ownership, use, and disposal of resources, goods or services. Money is any modity or token that is generally acceptable as a means of payment. Economic Coordination 169。 2020 Pearson AddisonWesley Circular Flows Through Markets Figure illustrates how households and firms interact in the market economy. Factors of production, goods and services flow in one direction. Money flows in the opposite direction. Economic Coordination 169。 2020 Pearson AddisonWesley Coordinating Decisions Markets coordinate individual decisions through price adjustments. Economic Coordination 169。 2020 Pearson AddisonWesley 169。 2020 Pearson AddisonWesley 3 DEMAND AND SUPPLY 169。 2020 Pearson AddisonWesley 169。 2020 Pearson AddisonWesley What makes the prices of oil and gasoline double in just one year? Will the price of gasoline keep on rising? Are the oil panies taking advantage of people? Some prices rise, some fall, and some fluctuate. This chapter explains how markets determine prices and why prices change. 169。 2020 Pearson AddisonWesley A market is any arrangement that enables buyers and sellers to get information and do business with each other. A petitive market is a market that has many buyers and many sellers so no single buyer or seller can influence the price. The money price of a good is the amount of money needed to buy it. The relative price of a good—the ratio of its money price to the money price of the next best alternative good—is its opportunity cost. Market and Prices 169。 2020 Pearson AddisonWesley If you demand something, then you 1. Want it, 2. Can afford it, and 3. Have made a definite plan to buy it. Wants are the unlimited desires or wishes people have for goods and services. Demand reflects a decision about which wants to satisfy. The quantity demanded of a good or service is the amount that consumers plan to buy during a particular time period, and at a particular price. Demand 169。 2020 Pearson AddisonWesley The Law of Demand The law of demand states: Other things remaining the same, the higher the price of a good, the smaller is the quantity demanded。 and the lower the price of a good, the larger is the quantity demanded. The law of demand results from  Substitution effect  Ine effect Demand 169。 2020 Pearson AddisonWesley Substitution Effect When the relative price (opportunity cost) of a good or service rises, people seek substitutes for it, so the quantity demanded of the good or service decreases. Ine Effect When the price of a good or service rises relative to ine, people cannot afford all the things they previously bought, so the quantity demanded of the good or service decreases. Demand 169。 2020 Pearson AddisonWesley Demand Curve and Demand Schedule The term demand refers to the entire relationship between the price of the good and quantity demanded of the good. A demand curve shows the relationship between the quantity demanded of a good and its price when all other influences on consumers’ planned purchases remain the same. Demand 169。 2020 Pearson AddisonWesley Figure shows a demand curve for energy bars. Demand 169。 2020 Pearson AddisonWesley A rise in the price, other things remaining the same, brings a decrease in the quantity demanded and a movement up along the demand curve. A fall in the price, other things remaining the same, brings an increase in the quantity demanded and a movement down along the demand curve. Demand 169。 2020 Pearson AddisonWesley Willingness and Ability to Pay A demand curve is also a willingnessandabilitytopay curve. The smaller the quantity available, the higher is the price that someone is willing to pay for another unit. Willingness to pay measures marginal benefit. Demand 169。 2020 Pearson AddisonWesley A Change in Demand When some influence on buying plans other than the price of the good changes, there is a change in demand for that。