平狄克微观经济学generalequilibriumandeconomicefficiency(编辑修改稿)

平狄克微观经济学generalequilibriumandeconomicefficiency(编辑修改稿)内容摘要：

s, or of two inputs between two production functions 169。 2020 Pearson Education, Inc. Chapter 16 37 The Contract Curve 0J James’ Clothing Karen’s Clothing 0K Karen’s Food James’ Food E F G Contract Curve E, F, amp。 G are Pareto efficient. 169。 2020 Pearson Education, Inc. Chapter 16 38 Contract Curve All points of tangency between the indifference curves are efficient MRS of individuals is the same No more room for trade The contract curve shows all allocations that are Pareto efficient Pareto efficient allocation occurs when further trade will make someone worse off 169。 2020 Pearson Education, Inc. Chapter 16 39 Efficiency in Exchange  Application: The policy implication of Pareto efficiency when removing import quotas: 1. Remove quotas  US consumers gain  Some US workers lose 2. Removal of quotas and subsidies to the workers 169。 2020 Pearson Education, Inc. Chapter 16 40 Efficiency in Exchange US consumers would be better off and after a time, the US workers are no worse off and might be better off Package will increase efficiency Efficiency, therefore, can be reached when the bined set of changes leaves someone better off and no one worse off 169。 2020 Pearson Education, Inc. Chapter 16 41 Efficiency in Exchange Consumer Equilibrium in a Competitive Market Competitive markets have many actual or potential buyers and sellers, so if people do not like the terms of an exchange, they can look for another seller who offers better terms 169。 2020 Pearson Education, Inc. Chapter 16 42 Consumer Equilibrium in a Competitive Market There are many Jameses and Karens They are price takers Relative price of food and clothing = 1 Trade depends on relative prices, not actual prices 169。 2020 Pearson Education, Inc. Chapter 16 43 Consumer Equilibrium in a Competitive Market We can show opportunities for trade for many consumers When prices of food and clothing are equal, we can show the price line, PP’ with a slope of –1  Shows all possible allocations that exchange can achieve James buys 2 clothing for 2 food: A to C Karen buys 2 food for 2 clothing: A to C Both increase satisfaction 169。 2020 Pearson Education, Inc. Chapter 16 44 Consumer Equilibrium in a Competitive Market Price Line 10F 0K 0J 6C 10F 6C James’ Clothing Karen’s Clothing Karen’s Food James’ Food C A Begin at A: Each James buys 2C and sells 2F moving from UJ1 to UJ2, which is preferred (A to C). Begin at A: Each Karen buys 2F and sells 2C moving from UK1 to UK2, which is preferred (A to C). P P’ UJ2 UJ1 UK1 UK2 169。 2020 Pearson Education, Inc. Chapter 16 45 Consumer Equilibrium in a Competitive Market The amount of clothing that Karen wanted to sell is equal to the amount of clothing that James wanted to buy An equilibrium is a set of prices at which the quantity demanded equals the quantity supplied in every market Also called petitive equilibrium 169。 2020 Pearson Education, Inc. Chapter 16 46 Consumer Equilibrium in a Competitive Market Not all prices lead to equilibrium If the MRSs of the players are not equal, then we are not in equilibrium If the price of food is 1 and price of clothing is 3: James is unwilling to trade, MRS = 189。 Karen is happy to sell clothing at that price but has no one to sell to Market is in disequilibrium 169。 2020 Pearson Education, Inc. Chapter 16 47 Consumer Equilibrium in a Competitive Market Disequilibrium is only temporary in a petitive market Excess demand will cause price to rise Excess supply will cause price to fall In our example, we have excess supply of clothing and excess demand of food Should expect the price of food to increase relative to price of clothing Prices adjust until equilibrium is reached 169。 2020 Pearson Education, Inc. Chapter 16 48 Economic Efficiency of Competitive Markets As shown before, we can see that the allocation in a petitive equilibrium is economically efficient The efficient point must occur where the two indifference curves are tangent If not, one of the consumers can increase their utility and be better off 169。 2020 Pearson Education, Inc. Chapter 16 49 Consumer Equilibrium in a Competitive Market In a general equilibrium setting where all markets are perfectly petitive, we can show the same result Best example of Adam Smith’s invisible hand Economy will automatically allocate all resources efficiently without need for regulatory control  Supports argument for less government intervention and more highly petitive markets 169。 2020 Pearson Education, Inc. Chapter 16 50 Consumer Equilibrium in a Competitive Market First Theorem of Welfare Economics If everyone trades in a petitive marketplace, all mutually beneficial trades will be pleted and the resulting equilibrium allocation of resources will be economically efficient Welfare economics involves the normative evaluation of markets and economic policy 169。 2020 Pearson Education, Inc. Chapter 16 51 Consumer Equilibrium in a Competitive Market  Competitive equilibrium 1. Because the indifference curves are tangent, all MRSs are equal between consumers 2. Because each indifference curve is tangent to the price line, each person’s MRS is equal to the price ratio of the two goods KFCFCJFC M R SPPM R S 169。 2020 Pearson Education, Inc. Chapter 16 52 Consumer Equilibrium in a Competitive Market Difficult for efficient allocation with many consumers and producers unless all markets are perfectly petitive Efficient outes can also be achieved by centralized system Competitive oute preferred since consumers and producers can better assess their preferences and supplies 169。 2020 Pearson Education, Inc. Chapter 16 53 Equity and。