Download - 101 lecture 8
![Page 1: 101 lecture 8](https://reader037.vdocuments.net/reader037/viewer/2022100221/5577791dd8b42a56728b4e76/html5/thumbnails/1.jpg)
Microeconomics Chapter 8
!
Taxation
![Page 2: 101 lecture 8](https://reader037.vdocuments.net/reader037/viewer/2022100221/5577791dd8b42a56728b4e76/html5/thumbnails/2.jpg)
Subsidy
![Page 3: 101 lecture 8](https://reader037.vdocuments.net/reader037/viewer/2022100221/5577791dd8b42a56728b4e76/html5/thumbnails/3.jpg)
Subsidy
opposite of a tax
![Page 4: 101 lecture 8](https://reader037.vdocuments.net/reader037/viewer/2022100221/5577791dd8b42a56728b4e76/html5/thumbnails/4.jpg)
0
10
20
30
40
50
60
70
80
90
100
0 1 2 3 4 5 6 7 8 9 10
Price
Quantity
Government Minimum Price
![Page 5: 101 lecture 8](https://reader037.vdocuments.net/reader037/viewer/2022100221/5577791dd8b42a56728b4e76/html5/thumbnails/5.jpg)
0
10
20
30
40
50
60
70
80
90
100
0 1 2 3 4 5 6 7 8 9 10
Price
Quantity
Government Minimum Price
Demand
![Page 6: 101 lecture 8](https://reader037.vdocuments.net/reader037/viewer/2022100221/5577791dd8b42a56728b4e76/html5/thumbnails/6.jpg)
0
10
20
30
40
50
60
70
80
90
100
0 1 2 3 4 5 6 7 8 9 10
Price
Quantity
Government Minimum Price
Demand
Supply
![Page 7: 101 lecture 8](https://reader037.vdocuments.net/reader037/viewer/2022100221/5577791dd8b42a56728b4e76/html5/thumbnails/7.jpg)
0
10
20
30
40
50
60
70
80
90
100
0 1 2 3 4 5 6 7 8 9 10
Price
Quantity
Government Minimum Price
Demand
Supply
![Page 8: 101 lecture 8](https://reader037.vdocuments.net/reader037/viewer/2022100221/5577791dd8b42a56728b4e76/html5/thumbnails/8.jpg)
0
10
20
30
40
50
60
70
80
90
100
0 1 2 3 4 5 6 7 8 9 10
Price
Quantity
Government Minimum Price
Demand
Supply
![Page 9: 101 lecture 8](https://reader037.vdocuments.net/reader037/viewer/2022100221/5577791dd8b42a56728b4e76/html5/thumbnails/9.jpg)
0
10
20
30
40
50
60
70
80
90
100
0 1 2 3 4 5 6 7 8 9 10
Price
Quantity
Government Minimum Price
Demand
Supply
![Page 10: 101 lecture 8](https://reader037.vdocuments.net/reader037/viewer/2022100221/5577791dd8b42a56728b4e76/html5/thumbnails/10.jpg)
0
10
20
30
40
50
60
70
80
90
100
0 1 2 3 4 5 6 7 8 9 10
Price
Quantity
Government Minimum Price
Demand
Supply
![Page 11: 101 lecture 8](https://reader037.vdocuments.net/reader037/viewer/2022100221/5577791dd8b42a56728b4e76/html5/thumbnails/11.jpg)
0
10
20
30
40
50
60
70
80
90
100
0 1 2 3 4 5 6 7 8 9 10
Price
Quantity
Government Minimum Price
Demand
Supply
![Page 12: 101 lecture 8](https://reader037.vdocuments.net/reader037/viewer/2022100221/5577791dd8b42a56728b4e76/html5/thumbnails/12.jpg)
0
10
20
30
40
50
60
70
80
90
100
0 1 2 3 4 5 6 7 8 9 10
Price
Quantity
Government Minimum Price
Demand
Supply
![Page 13: 101 lecture 8](https://reader037.vdocuments.net/reader037/viewer/2022100221/5577791dd8b42a56728b4e76/html5/thumbnails/13.jpg)
0
10
20
30
40
50
60
70
80
90
100
0 1 2 3 4 5 6 7 8 9 10
Price
Quantity
Government Minimum Price
Demand
SupplyConsumer
Surplus
![Page 14: 101 lecture 8](https://reader037.vdocuments.net/reader037/viewer/2022100221/5577791dd8b42a56728b4e76/html5/thumbnails/14.jpg)
0
10
20
30
40
50
60
70
80
90
100
0 1 2 3 4 5 6 7 8 9 10
Price
Quantity
Government Minimum Price
Demand
SupplyConsumer
Surplus
![Page 15: 101 lecture 8](https://reader037.vdocuments.net/reader037/viewer/2022100221/5577791dd8b42a56728b4e76/html5/thumbnails/15.jpg)
0
10
20
30
40
50
60
70
80
90
100
0 1 2 3 4 5 6 7 8 9 10
Price
Quantity
Government Minimum Price
Demand
SupplyConsumer
Surplus
Producer Surplus
![Page 16: 101 lecture 8](https://reader037.vdocuments.net/reader037/viewer/2022100221/5577791dd8b42a56728b4e76/html5/thumbnails/16.jpg)
0
10
20
30
40
50
60
70
80
90
100
0 1 2 3 4 5 6 7 8 9 10
Price
Quantity
Government Minimum Price
Demand
SupplyConsumer
Surplus
Producer Surplus
Government Price
Minimum
![Page 17: 101 lecture 8](https://reader037.vdocuments.net/reader037/viewer/2022100221/5577791dd8b42a56728b4e76/html5/thumbnails/17.jpg)
0
10
20
30
40
50
60
70
80
90
100
0 1 2 3 4 5 6 7 8 9 10
Price
Quantity
Government Minimum Price
Demand
SupplyConsumer
Surplus
Producer Surplus
Government Price
Minimum
![Page 18: 101 lecture 8](https://reader037.vdocuments.net/reader037/viewer/2022100221/5577791dd8b42a56728b4e76/html5/thumbnails/18.jpg)
0
10
20
30
40
50
60
70
80
90
100
0 1 2 3 4 5 6 7 8 9 10
Price
Quantity
Government Minimum Price
Demand
SupplyConsumer
Surplus
Producer Surplus
Government Price
Minimum
![Page 19: 101 lecture 8](https://reader037.vdocuments.net/reader037/viewer/2022100221/5577791dd8b42a56728b4e76/html5/thumbnails/19.jpg)
0
10
20
30
40
50
60
70
80
90
100
0 1 2 3 4 5 6 7 8 9 10
Price
Quantity
Government Minimum Price
Demand
SupplyConsumer
Surplus
Producer Surplus
Government Price
MinimumLoss
![Page 20: 101 lecture 8](https://reader037.vdocuments.net/reader037/viewer/2022100221/5577791dd8b42a56728b4e76/html5/thumbnails/20.jpg)
0
10
20
30
40
50
60
70
80
90
100
0 1 2 3 4 5 6 7 8 9 10
Price
Quantity
Government Minimum Price
Demand
SupplyConsumer
Surplus
Producer Surplus
Government Price
MinimumLoss
Loss
![Page 21: 101 lecture 8](https://reader037.vdocuments.net/reader037/viewer/2022100221/5577791dd8b42a56728b4e76/html5/thumbnails/21.jpg)
0
10
20
30
40
50
60
70
80
90
100
0 1 2 3 4 5 6 7 8 9 10
Price
Quantity
Government Minimum Price
Demand
SupplyConsumer
Surplus
Producer Surplus
Government Price
MinimumLoss
Loss
![Page 22: 101 lecture 8](https://reader037.vdocuments.net/reader037/viewer/2022100221/5577791dd8b42a56728b4e76/html5/thumbnails/22.jpg)
0
10
20
30
40
50
60
70
80
90
100
0 1 2 3 4 5 6 7 8 9 10
Price
Quantity
Government Minimum Price
Demand
SupplyConsumer
Surplus
Producer Surplus
Government Price
MinimumLoss
Loss
![Page 23: 101 lecture 8](https://reader037.vdocuments.net/reader037/viewer/2022100221/5577791dd8b42a56728b4e76/html5/thumbnails/23.jpg)
0
10
20
30
40
50
60
70
80
90
100
0 1 2 3 4 5 6 7 8 9 10
Price
Quantity
Government Minimum Price
Demand
SupplyConsumer
Surplus
Producer Surplus
Government Price
MinimumLoss
Loss
![Page 24: 101 lecture 8](https://reader037.vdocuments.net/reader037/viewer/2022100221/5577791dd8b42a56728b4e76/html5/thumbnails/24.jpg)
0
10
20
30
40
50
60
70
80
90
100
0 1 2 3 4 5 6 7 8 9 10
Price
Quantity
Government Minimum Price
Demand
SupplyConsumer
Surplus
Producer Surplus
Government Price
MinimumLoss
Loss
![Page 25: 101 lecture 8](https://reader037.vdocuments.net/reader037/viewer/2022100221/5577791dd8b42a56728b4e76/html5/thumbnails/25.jpg)
0
10
20
30
40
50
60
70
80
90
100
0 1 2 3 4 5 6 7 8 9 10
Price
Quantity
Government Minimum Price
Demand
SupplyConsumer
Surplus
Producer Surplus
Government Price
Minimum Consumer Loss Producer Gain Loss
Loss
![Page 26: 101 lecture 8](https://reader037.vdocuments.net/reader037/viewer/2022100221/5577791dd8b42a56728b4e76/html5/thumbnails/26.jpg)
0
10
20
30
40
50
60
70
80
90
100
0 1 2 3 4 5 6 7 8 9 10
Price
Quantity
Government Minimum Price
Demand
SupplyConsumer
Surplus
Producer Surplus
Consumer Surplus Area Before = 125 After = 45 Change = Lose 80
Government Price
Minimum Consumer Loss Producer Gain Loss
Loss
![Page 27: 101 lecture 8](https://reader037.vdocuments.net/reader037/viewer/2022100221/5577791dd8b42a56728b4e76/html5/thumbnails/27.jpg)
0
10
20
30
40
50
60
70
80
90
100
0 1 2 3 4 5 6 7 8 9 10
Price
Quantity
Government Minimum Price
Demand
SupplyConsumer
Surplus
Producer Surplus
Consumer Surplus Area Before = 125 After = 45 Change = Lose 80
Producer Surplus Area Before = 125 After = 165 Change = Gain 40
Government Price
Minimum Consumer Loss Producer Gain Loss
Loss
![Page 28: 101 lecture 8](https://reader037.vdocuments.net/reader037/viewer/2022100221/5577791dd8b42a56728b4e76/html5/thumbnails/28.jpg)
0
10
20
30
40
50
60
70
80
90
100
0 1 2 3 4 5 6 7 8 9 10
Price
Quantity
Government Minimum Price
Demand
SupplyConsumer
Surplus
Producer Surplus
Consumer Surplus Area Before = 125 After = 45 Change = Lose 80
Producer Surplus Area Before = 125 After = 165 Change = Gain 40
Total Surplus Area Before = 250 After = 210 Deadweight Loss = 40
Government Price
Minimum Consumer Loss Producer Gain Loss
Loss
![Page 29: 101 lecture 8](https://reader037.vdocuments.net/reader037/viewer/2022100221/5577791dd8b42a56728b4e76/html5/thumbnails/29.jpg)
0
10
20
30
40
50
60
70
80
90
100
0 1 2 3 4 5 6 7 8 9 10
Price
Quantity
Government Maximum Price
![Page 30: 101 lecture 8](https://reader037.vdocuments.net/reader037/viewer/2022100221/5577791dd8b42a56728b4e76/html5/thumbnails/30.jpg)
0
10
20
30
40
50
60
70
80
90
100
0 1 2 3 4 5 6 7 8 9 10
Price
Quantity
Demand
Government Maximum Price
![Page 31: 101 lecture 8](https://reader037.vdocuments.net/reader037/viewer/2022100221/5577791dd8b42a56728b4e76/html5/thumbnails/31.jpg)
0
10
20
30
40
50
60
70
80
90
100
0 1 2 3 4 5 6 7 8 9 10
Price
Quantity
Demand
Supply
Government Maximum Price
![Page 32: 101 lecture 8](https://reader037.vdocuments.net/reader037/viewer/2022100221/5577791dd8b42a56728b4e76/html5/thumbnails/32.jpg)
0
10
20
30
40
50
60
70
80
90
100
0 1 2 3 4 5 6 7 8 9 10
Price
Quantity
Demand
Supply
Government Maximum Price
![Page 33: 101 lecture 8](https://reader037.vdocuments.net/reader037/viewer/2022100221/5577791dd8b42a56728b4e76/html5/thumbnails/33.jpg)
0
10
20
30
40
50
60
70
80
90
100
0 1 2 3 4 5 6 7 8 9 10
Price
Quantity
Demand
Supply
Government Maximum Price
![Page 34: 101 lecture 8](https://reader037.vdocuments.net/reader037/viewer/2022100221/5577791dd8b42a56728b4e76/html5/thumbnails/34.jpg)
0
10
20
30
40
50
60
70
80
90
100
0 1 2 3 4 5 6 7 8 9 10
Price
Quantity
Demand
Supply
Government Maximum Price
![Page 35: 101 lecture 8](https://reader037.vdocuments.net/reader037/viewer/2022100221/5577791dd8b42a56728b4e76/html5/thumbnails/35.jpg)
0
10
20
30
40
50
60
70
80
90
100
0 1 2 3 4 5 6 7 8 9 10
Price
Quantity
Demand
Supply
Government Maximum Price
![Page 36: 101 lecture 8](https://reader037.vdocuments.net/reader037/viewer/2022100221/5577791dd8b42a56728b4e76/html5/thumbnails/36.jpg)
0
10
20
30
40
50
60
70
80
90
100
0 1 2 3 4 5 6 7 8 9 10
Price
Quantity
Demand
Supply
Government Maximum Price
![Page 37: 101 lecture 8](https://reader037.vdocuments.net/reader037/viewer/2022100221/5577791dd8b42a56728b4e76/html5/thumbnails/37.jpg)
0
10
20
30
40
50
60
70
80
90
100
0 1 2 3 4 5 6 7 8 9 10
Price
Quantity
Demand
Supply
Government Maximum Price
![Page 38: 101 lecture 8](https://reader037.vdocuments.net/reader037/viewer/2022100221/5577791dd8b42a56728b4e76/html5/thumbnails/38.jpg)
0
10
20
30
40
50
60
70
80
90
100
0 1 2 3 4 5 6 7 8 9 10
Price
Quantity
Demand
SupplyConsumer
Surplus
Government Maximum Price
![Page 39: 101 lecture 8](https://reader037.vdocuments.net/reader037/viewer/2022100221/5577791dd8b42a56728b4e76/html5/thumbnails/39.jpg)
0
10
20
30
40
50
60
70
80
90
100
0 1 2 3 4 5 6 7 8 9 10
Price
Quantity
Demand
SupplyConsumer
Surplus
Government Maximum Price
![Page 40: 101 lecture 8](https://reader037.vdocuments.net/reader037/viewer/2022100221/5577791dd8b42a56728b4e76/html5/thumbnails/40.jpg)
0
10
20
30
40
50
60
70
80
90
100
0 1 2 3 4 5 6 7 8 9 10
Price
Quantity
Demand
SupplyConsumer
Surplus
Producer Surplus
Government Maximum Price
![Page 41: 101 lecture 8](https://reader037.vdocuments.net/reader037/viewer/2022100221/5577791dd8b42a56728b4e76/html5/thumbnails/41.jpg)
0
10
20
30
40
50
60
70
80
90
100
0 1 2 3 4 5 6 7 8 9 10
Price
Quantity
Demand
SupplyConsumer
Surplus
Producer Surplus
Government Price
Maximum
Government Maximum Price
![Page 42: 101 lecture 8](https://reader037.vdocuments.net/reader037/viewer/2022100221/5577791dd8b42a56728b4e76/html5/thumbnails/42.jpg)
0
10
20
30
40
50
60
70
80
90
100
0 1 2 3 4 5 6 7 8 9 10
Price
Quantity
Demand
SupplyConsumer
Surplus
Producer Surplus
Government Price
Maximum
Government Maximum Price
![Page 43: 101 lecture 8](https://reader037.vdocuments.net/reader037/viewer/2022100221/5577791dd8b42a56728b4e76/html5/thumbnails/43.jpg)
0
10
20
30
40
50
60
70
80
90
100
0 1 2 3 4 5 6 7 8 9 10
Price
Quantity
Demand
SupplyConsumer
Surplus
Producer Surplus
Government Price
Maximum
Government Maximum Price
![Page 44: 101 lecture 8](https://reader037.vdocuments.net/reader037/viewer/2022100221/5577791dd8b42a56728b4e76/html5/thumbnails/44.jpg)
0
10
20
30
40
50
60
70
80
90
100
0 1 2 3 4 5 6 7 8 9 10
Price
Quantity
Demand
SupplyConsumer
Surplus
Producer Surplus
Government Price
Maximum
Government Maximum Price
![Page 45: 101 lecture 8](https://reader037.vdocuments.net/reader037/viewer/2022100221/5577791dd8b42a56728b4e76/html5/thumbnails/45.jpg)
0
10
20
30
40
50
60
70
80
90
100
0 1 2 3 4 5 6 7 8 9 10
Price
Quantity
Demand
SupplyConsumer
Surplus
Producer Surplus
Government Price
Maximum
Loss
Government Maximum Price
![Page 46: 101 lecture 8](https://reader037.vdocuments.net/reader037/viewer/2022100221/5577791dd8b42a56728b4e76/html5/thumbnails/46.jpg)
0
10
20
30
40
50
60
70
80
90
100
0 1 2 3 4 5 6 7 8 9 10
Price
Quantity
Demand
SupplyConsumer
Surplus
Producer Surplus
Government Price
Maximum
Loss
Loss
Government Maximum Price
![Page 47: 101 lecture 8](https://reader037.vdocuments.net/reader037/viewer/2022100221/5577791dd8b42a56728b4e76/html5/thumbnails/47.jpg)
0
10
20
30
40
50
60
70
80
90
100
0 1 2 3 4 5 6 7 8 9 10
Price
Quantity
Demand
SupplyConsumer
Surplus
Producer Surplus
Government Price
Maximum
Loss
Loss
Government Maximum Price
![Page 48: 101 lecture 8](https://reader037.vdocuments.net/reader037/viewer/2022100221/5577791dd8b42a56728b4e76/html5/thumbnails/48.jpg)
0
10
20
30
40
50
60
70
80
90
100
0 1 2 3 4 5 6 7 8 9 10
Price
Quantity
Demand
SupplyConsumer
Surplus
Producer Surplus
Government Price
Maximum
Loss
Loss
Government Maximum Price
![Page 49: 101 lecture 8](https://reader037.vdocuments.net/reader037/viewer/2022100221/5577791dd8b42a56728b4e76/html5/thumbnails/49.jpg)
0
10
20
30
40
50
60
70
80
90
100
0 1 2 3 4 5 6 7 8 9 10
Price
Quantity
Demand
SupplyConsumer
Surplus
Producer Surplus
Government Price
Maximum
Loss
Loss
Government Maximum Price
![Page 50: 101 lecture 8](https://reader037.vdocuments.net/reader037/viewer/2022100221/5577791dd8b42a56728b4e76/html5/thumbnails/50.jpg)
0
10
20
30
40
50
60
70
80
90
100
0 1 2 3 4 5 6 7 8 9 10
Price
Quantity
Demand
SupplyConsumer
Surplus
Producer Surplus
Government Price
Maximum
Consumer Gain Producer Loss
Loss
Loss
Government Maximum Price
![Page 51: 101 lecture 8](https://reader037.vdocuments.net/reader037/viewer/2022100221/5577791dd8b42a56728b4e76/html5/thumbnails/51.jpg)
0
10
20
30
40
50
60
70
80
90
100
0 1 2 3 4 5 6 7 8 9 10
Price
Quantity
Demand
SupplyConsumer
Surplus
Producer Surplus
Consumer Surplus Area Before = 125 After = 140 Change = Gain 15
Government Price
Maximum
Consumer Gain Producer Loss
Loss
Loss
Government Maximum Price
![Page 52: 101 lecture 8](https://reader037.vdocuments.net/reader037/viewer/2022100221/5577791dd8b42a56728b4e76/html5/thumbnails/52.jpg)
0
10
20
30
40
50
60
70
80
90
100
0 1 2 3 4 5 6 7 8 9 10
Price
Quantity
Demand
SupplyConsumer
Surplus
Producer Surplus
Consumer Surplus Area Before = 125 After = 140 Change = Gain 15
Producer Surplus Area Before = 125 After = 20 Change = Loss 105
Government Price
Maximum
Consumer Gain Producer Loss
Loss
Loss
Government Maximum Price
![Page 53: 101 lecture 8](https://reader037.vdocuments.net/reader037/viewer/2022100221/5577791dd8b42a56728b4e76/html5/thumbnails/53.jpg)
0
10
20
30
40
50
60
70
80
90
100
0 1 2 3 4 5 6 7 8 9 10
Price
Quantity
Demand
SupplyConsumer
Surplus
Producer Surplus
Consumer Surplus Area Before = 125 After = 140 Change = Gain 15
Producer Surplus Area Before = 125 After = 20 Change = Loss 105
Total Surplus Area Before = 250 After = 160 Deadweight Loss = 90
Government Price
Maximum
Consumer Gain Producer Loss
Loss
Loss
Government Maximum Price
![Page 54: 101 lecture 8](https://reader037.vdocuments.net/reader037/viewer/2022100221/5577791dd8b42a56728b4e76/html5/thumbnails/54.jpg)
0
10
20
30
40
50
60
70
80
90
100
0 1 2 3 4 5 6 7 8 9 10
Price
Quantity
Supply Shift
Demand
Supply1
![Page 55: 101 lecture 8](https://reader037.vdocuments.net/reader037/viewer/2022100221/5577791dd8b42a56728b4e76/html5/thumbnails/55.jpg)
0
10
20
30
40
50
60
70
80
90
100
0 1 2 3 4 5 6 7 8 9 10
Price
Quantity
Supply Shift
Demand
Consumer Surplus
Supply1
![Page 56: 101 lecture 8](https://reader037.vdocuments.net/reader037/viewer/2022100221/5577791dd8b42a56728b4e76/html5/thumbnails/56.jpg)
0
10
20
30
40
50
60
70
80
90
100
0 1 2 3 4 5 6 7 8 9 10
Price
Quantity
Supply Shift
Demand
Producer Surplus
Consumer Surplus
Supply1
![Page 57: 101 lecture 8](https://reader037.vdocuments.net/reader037/viewer/2022100221/5577791dd8b42a56728b4e76/html5/thumbnails/57.jpg)
0
10
20
30
40
50
60
70
80
90
100
0 1 2 3 4 5 6 7 8 9 10
Price
Quantity
Supply Shift
Demand
Producer Surplus
Consumer Surplus
Supply2
Supply1
![Page 58: 101 lecture 8](https://reader037.vdocuments.net/reader037/viewer/2022100221/5577791dd8b42a56728b4e76/html5/thumbnails/58.jpg)
0
10
20
30
40
50
60
70
80
90
100
0 1 2 3 4 5 6 7 8 9 10
Price
Quantity
Supply Shift
Demand
Producer Surplus
Consumer Surplus
Supply2
Supply1
![Page 59: 101 lecture 8](https://reader037.vdocuments.net/reader037/viewer/2022100221/5577791dd8b42a56728b4e76/html5/thumbnails/59.jpg)
0
10
20
30
40
50
60
70
80
90
100
0 1 2 3 4 5 6 7 8 9 10
Price
Quantity
Supply Shift
Demand
Supply2
Supply1
![Page 60: 101 lecture 8](https://reader037.vdocuments.net/reader037/viewer/2022100221/5577791dd8b42a56728b4e76/html5/thumbnails/60.jpg)
0
10
20
30
40
50
60
70
80
90
100
0 1 2 3 4 5 6 7 8 9 10
Price
Quantity
Supply Shift
Demand
Consumer Surplus
Supply2
Supply1
![Page 61: 101 lecture 8](https://reader037.vdocuments.net/reader037/viewer/2022100221/5577791dd8b42a56728b4e76/html5/thumbnails/61.jpg)
0
10
20
30
40
50
60
70
80
90
100
0 1 2 3 4 5 6 7 8 9 10
Price
Quantity
Supply Shift
Demand
Consumer Surplus
Producer Surplus
Supply2
Supply1
![Page 62: 101 lecture 8](https://reader037.vdocuments.net/reader037/viewer/2022100221/5577791dd8b42a56728b4e76/html5/thumbnails/62.jpg)
0
10
20
30
40
50
60
70
80
90
100
0 1 2 3 4 5 6 7 8 9 10
Price
Quantity
Supply Shift
Demand
Consumer Surplus
Producer Surplus
Total Surplus Before = 250 After = 90 Change = Loss 160
Supply2
Supply1
![Page 63: 101 lecture 8](https://reader037.vdocuments.net/reader037/viewer/2022100221/5577791dd8b42a56728b4e76/html5/thumbnails/63.jpg)
0
10
20
30
40
50
60
70
80
90
100
0 1 2 3 4 5 6 7 8 9 10
Price
Quantity
Supply Shift
Demand
Consumer Surplus
Producer Surplus
Total Surplus Before = 250 After = 90 Change = Loss 160
Supply2
Supply1
![Page 64: 101 lecture 8](https://reader037.vdocuments.net/reader037/viewer/2022100221/5577791dd8b42a56728b4e76/html5/thumbnails/64.jpg)
0
10
20
30
40
50
60
70
80
90
100
0 1 2 3 4 5 6 7 8 9 10
Price
Quantity
Supply Shift
Demand
Consumer Surplus
Producer Surplus
Total Surplus Before = 250 After = 90 Change = Loss 160
Supply2
Supply1
![Page 65: 101 lecture 8](https://reader037.vdocuments.net/reader037/viewer/2022100221/5577791dd8b42a56728b4e76/html5/thumbnails/65.jpg)
0
10
20
30
40
50
60
70
80
90
100
0 1 2 3 4 5 6 7 8 9 10
Demand
SupplySR
Q
![Page 66: 101 lecture 8](https://reader037.vdocuments.net/reader037/viewer/2022100221/5577791dd8b42a56728b4e76/html5/thumbnails/66.jpg)
0
10
20
30
40
50
60
70
80
90
100
0 1 2 3 4 5 6 7 8 9 10
Demand
SupplySR
Q
![Page 67: 101 lecture 8](https://reader037.vdocuments.net/reader037/viewer/2022100221/5577791dd8b42a56728b4e76/html5/thumbnails/67.jpg)
0
10
20
30
40
50
60
70
80
90
100
0 1 2 3 4 5 6 7 8 9 10
Demand
SupplySR
Q
![Page 68: 101 lecture 8](https://reader037.vdocuments.net/reader037/viewer/2022100221/5577791dd8b42a56728b4e76/html5/thumbnails/68.jpg)
0
10
20
30
40
50
60
70
80
90
100
0 1 2 3 4 5 6 7 8 9 10
Demand
SupplySR
Q
Buyer Surplus
![Page 69: 101 lecture 8](https://reader037.vdocuments.net/reader037/viewer/2022100221/5577791dd8b42a56728b4e76/html5/thumbnails/69.jpg)
0
10
20
30
40
50
60
70
80
90
100
0 1 2 3 4 5 6 7 8 9 10
Demand
SupplySR
Q
Buyer Surplus
![Page 70: 101 lecture 8](https://reader037.vdocuments.net/reader037/viewer/2022100221/5577791dd8b42a56728b4e76/html5/thumbnails/70.jpg)
0
10
20
30
40
50
60
70
80
90
100
0 1 2 3 4 5 6 7 8 9 10
Demand
SupplySR
Q
Buyer Surplus
Seller Surplus
![Page 71: 101 lecture 8](https://reader037.vdocuments.net/reader037/viewer/2022100221/5577791dd8b42a56728b4e76/html5/thumbnails/71.jpg)
0
10
20
30
40
50
60
70
80
90
100
0 1 2 3 4 5 6 7 8 9 10
Demand
SupplySR
Q
Buyer Surplus
Minimum Price
Seller Surplus
![Page 72: 101 lecture 8](https://reader037.vdocuments.net/reader037/viewer/2022100221/5577791dd8b42a56728b4e76/html5/thumbnails/72.jpg)
0
10
20
30
40
50
60
70
80
90
100
0 1 2 3 4 5 6 7 8 9 10
Demand
SupplySR
Q
Buyer Surplus
Minimum Price
Seller Surplus
![Page 73: 101 lecture 8](https://reader037.vdocuments.net/reader037/viewer/2022100221/5577791dd8b42a56728b4e76/html5/thumbnails/73.jpg)
0
10
20
30
40
50
60
70
80
90
100
0 1 2 3 4 5 6 7 8 9 10
Demand
SupplySR
Q
Buyer Surplus
Minimum Price
Seller Surplus
![Page 74: 101 lecture 8](https://reader037.vdocuments.net/reader037/viewer/2022100221/5577791dd8b42a56728b4e76/html5/thumbnails/74.jpg)
0
10
20
30
40
50
60
70
80
90
100
0 1 2 3 4 5 6 7 8 9 10
Demand
SupplySR
QQd
Buyer Surplus
Minimum Price
Seller Surplus
![Page 75: 101 lecture 8](https://reader037.vdocuments.net/reader037/viewer/2022100221/5577791dd8b42a56728b4e76/html5/thumbnails/75.jpg)
0
10
20
30
40
50
60
70
80
90
100
0 1 2 3 4 5 6 7 8 9 10
Demand
SupplySR
QQd
Buyer Surplus
Minimum Price
Seller Surplus
![Page 76: 101 lecture 8](https://reader037.vdocuments.net/reader037/viewer/2022100221/5577791dd8b42a56728b4e76/html5/thumbnails/76.jpg)
0
10
20
30
40
50
60
70
80
90
100
0 1 2 3 4 5 6 7 8 9 10
Demand
SupplySR
QQd
Buyer Surplus
Minimum Price
Seller Surplus
![Page 77: 101 lecture 8](https://reader037.vdocuments.net/reader037/viewer/2022100221/5577791dd8b42a56728b4e76/html5/thumbnails/77.jpg)
0
10
20
30
40
50
60
70
80
90
100
0 1 2 3 4 5 6 7 8 9 10
Demand
SupplySR
QQd Qs
Buyer Surplus
Minimum Price
Seller Surplus
![Page 78: 101 lecture 8](https://reader037.vdocuments.net/reader037/viewer/2022100221/5577791dd8b42a56728b4e76/html5/thumbnails/78.jpg)
0
10
20
30
40
50
60
70
80
90
100
0 1 2 3 4 5 6 7 8 9 10
Demand
SupplySR
QQd QsSurplus
Buyer Surplus
Minimum Price
Seller Surplus
![Page 79: 101 lecture 8](https://reader037.vdocuments.net/reader037/viewer/2022100221/5577791dd8b42a56728b4e76/html5/thumbnails/79.jpg)
0
10
20
30
40
50
60
70
80
90
100
0 1 2 3 4 5 6 7 8 9 10
Demand
SupplySR
QQd QsSurplus 7-3 = 4
Buyer Surplus
Minimum Price
Seller Surplus
![Page 80: 101 lecture 8](https://reader037.vdocuments.net/reader037/viewer/2022100221/5577791dd8b42a56728b4e76/html5/thumbnails/80.jpg)
0
10
20
30
40
50
60
70
80
90
100
0 1 2 3 4 5 6 7 8 9 10
Demand
SupplySR
QQd QsSurplus 7-3 = 4
Buyer Surplus
Minimum Price
Seller Surplus
![Page 81: 101 lecture 8](https://reader037.vdocuments.net/reader037/viewer/2022100221/5577791dd8b42a56728b4e76/html5/thumbnails/81.jpg)
0
10
20
30
40
50
60
70
80
90
100
0 1 2 3 4 5 6 7 8 9 10
Demand
SupplySR
QQd QsSurplus 7-3 = 4
A
Buyer Surplus
Minimum Price
Seller Surplus
![Page 82: 101 lecture 8](https://reader037.vdocuments.net/reader037/viewer/2022100221/5577791dd8b42a56728b4e76/html5/thumbnails/82.jpg)
0
10
20
30
40
50
60
70
80
90
100
0 1 2 3 4 5 6 7 8 9 10
Demand
SupplySR
QQd QsSurplus 7-3 = 4
A
B Buyer Surplus
Minimum Price
Seller Surplus
![Page 83: 101 lecture 8](https://reader037.vdocuments.net/reader037/viewer/2022100221/5577791dd8b42a56728b4e76/html5/thumbnails/83.jpg)
0
10
20
30
40
50
60
70
80
90
100
0 1 2 3 4 5 6 7 8 9 10
Demand
SupplySR
QQd QsSurplus 7-3 = 4
A
BC
Buyer Surplus
Minimum Price
Seller Surplus
![Page 84: 101 lecture 8](https://reader037.vdocuments.net/reader037/viewer/2022100221/5577791dd8b42a56728b4e76/html5/thumbnails/84.jpg)
0
10
20
30
40
50
60
70
80
90
100
0 1 2 3 4 5 6 7 8 9 10
Demand
SupplySR
QQd QsSurplus 7-3 = 4
A
BC
D
Buyer Surplus
Minimum Price
Seller Surplus
![Page 85: 101 lecture 8](https://reader037.vdocuments.net/reader037/viewer/2022100221/5577791dd8b42a56728b4e76/html5/thumbnails/85.jpg)
0
10
20
30
40
50
60
70
80
90
100
0 1 2 3 4 5 6 7 8 9 10
Demand
SupplySR
QQd QsSurplus 7-3 = 4
A
BC
D E
Buyer Surplus
Minimum Price
Seller Surplus
![Page 86: 101 lecture 8](https://reader037.vdocuments.net/reader037/viewer/2022100221/5577791dd8b42a56728b4e76/html5/thumbnails/86.jpg)
0
10
20
30
40
50
60
70
80
90
100
0 1 2 3 4 5 6 7 8 9 10
Demand
SupplySR
QQd QsSurplus 7-3 = 4
A
BC
D E
F
Buyer Surplus
Minimum Price
Seller Surplus
![Page 87: 101 lecture 8](https://reader037.vdocuments.net/reader037/viewer/2022100221/5577791dd8b42a56728b4e76/html5/thumbnails/87.jpg)
0
10
20
30
40
50
60
70
80
90
100
0 1 2 3 4 5 6 7 8 9 10
Demand
SupplySR
QQd QsSurplus 7-3 = 4
A
BC
D E
F
Buyer Surplus
Minimum Price
Seller Surplus
![Page 88: 101 lecture 8](https://reader037.vdocuments.net/reader037/viewer/2022100221/5577791dd8b42a56728b4e76/html5/thumbnails/88.jpg)
0
10
20
30
40
50
60
70
80
90
100
0 1 2 3 4 5 6 7 8 9 10
Demand
SupplySR
QQd QsSurplus 7-3 = 4
A
BC
D E
F
Minimum Price
Seller Surplus
![Page 89: 101 lecture 8](https://reader037.vdocuments.net/reader037/viewer/2022100221/5577791dd8b42a56728b4e76/html5/thumbnails/89.jpg)
0
10
20
30
40
50
60
70
80
90
100
0 1 2 3 4 5 6 7 8 9 10
Demand
SupplySR
Q
Buyer Surplus
Qd QsSurplus 7-3 = 4
A
BC
D E
F
Minimum Price
Seller Surplus
![Page 90: 101 lecture 8](https://reader037.vdocuments.net/reader037/viewer/2022100221/5577791dd8b42a56728b4e76/html5/thumbnails/90.jpg)
0
10
20
30
40
50
60
70
80
90
100
0 1 2 3 4 5 6 7 8 9 10
Demand
SupplySR
Q
Buyer Surplus
Qd QsSurplus 7-3 = 4
A
BC
D E
F
Minimum Price
Seller Surplus
![Page 91: 101 lecture 8](https://reader037.vdocuments.net/reader037/viewer/2022100221/5577791dd8b42a56728b4e76/html5/thumbnails/91.jpg)
0
10
20
30
40
50
60
70
80
90
100
0 1 2 3 4 5 6 7 8 9 10
Demand
SupplySR
Q
Buyer Surplus
Qd QsSurplus 7-3 = 4
A
BC
D E
F
Minimum Price
Seller Surplus
![Page 92: 101 lecture 8](https://reader037.vdocuments.net/reader037/viewer/2022100221/5577791dd8b42a56728b4e76/html5/thumbnails/92.jpg)
0
10
20
30
40
50
60
70
80
90
100
0 1 2 3 4 5 6 7 8 9 10
Demand
SupplySR
Q
Buyer Surplus
Qd QsSurplus 7-3 = 4
A
BC
D E
F
Buyers Lose C to
deadweight loss and lose B to
SellersMinimum Price
Seller Surplus
![Page 93: 101 lecture 8](https://reader037.vdocuments.net/reader037/viewer/2022100221/5577791dd8b42a56728b4e76/html5/thumbnails/93.jpg)
0
10
20
30
40
50
60
70
80
90
100
0 1 2 3 4 5 6 7 8 9 10
Demand
SupplySR
Q
Buyer Surplus
Qd QsSurplus 7-3 = 4
A
BC
D E
F
Buyers Lose C to
deadweight loss and lose B to
Sellers
Sellers Lose E to
deadweight loss but gain B from
Buyers
Minimum Price
Seller Surplus
![Page 94: 101 lecture 8](https://reader037.vdocuments.net/reader037/viewer/2022100221/5577791dd8b42a56728b4e76/html5/thumbnails/94.jpg)
0
10
20
30
40
50
60
70
80
90
100
0 1 2 3 4 5 6 7 8 9 10
Demand
SupplySR
Q
Buyer Surplus
Qd QsSurplus 7-3 = 4
A
BC
D E
F
Buyers Lose C to
deadweight loss and lose B to
Sellers
Sellers Lose E to
deadweight loss but gain B from
Buyers
A =( (100-70) x 3) ÷ 2 = 45 B= 20 x 3 = 60 C = (70-50) x (5-3) ÷2 =20 D = 60 E = 20 F = 45
Minimum Price
Seller Surplus
![Page 95: 101 lecture 8](https://reader037.vdocuments.net/reader037/viewer/2022100221/5577791dd8b42a56728b4e76/html5/thumbnails/95.jpg)
0
10
20
30
40
50
60
70
80
90
100
0 1 2 3 4 5 6 7 8 9 10
Demand
SupplySR
Q
![Page 96: 101 lecture 8](https://reader037.vdocuments.net/reader037/viewer/2022100221/5577791dd8b42a56728b4e76/html5/thumbnails/96.jpg)
0
10
20
30
40
50
60
70
80
90
100
0 1 2 3 4 5 6 7 8 9 10
Demand
SupplySR
Q
![Page 97: 101 lecture 8](https://reader037.vdocuments.net/reader037/viewer/2022100221/5577791dd8b42a56728b4e76/html5/thumbnails/97.jpg)
0
10
20
30
40
50
60
70
80
90
100
0 1 2 3 4 5 6 7 8 9 10
Demand
SupplySR
Q
![Page 98: 101 lecture 8](https://reader037.vdocuments.net/reader037/viewer/2022100221/5577791dd8b42a56728b4e76/html5/thumbnails/98.jpg)
0
10
20
30
40
50
60
70
80
90
100
0 1 2 3 4 5 6 7 8 9 10
Demand
SupplySR
Q
![Page 99: 101 lecture 8](https://reader037.vdocuments.net/reader037/viewer/2022100221/5577791dd8b42a56728b4e76/html5/thumbnails/99.jpg)
0
10
20
30
40
50
60
70
80
90
100
0 1 2 3 4 5 6 7 8 9 10
Demand
SupplySR
Q
Buyer Surplus
![Page 100: 101 lecture 8](https://reader037.vdocuments.net/reader037/viewer/2022100221/5577791dd8b42a56728b4e76/html5/thumbnails/100.jpg)
0
10
20
30
40
50
60
70
80
90
100
0 1 2 3 4 5 6 7 8 9 10
Demand
SupplySR
Q
Buyer Surplus
![Page 101: 101 lecture 8](https://reader037.vdocuments.net/reader037/viewer/2022100221/5577791dd8b42a56728b4e76/html5/thumbnails/101.jpg)
0
10
20
30
40
50
60
70
80
90
100
0 1 2 3 4 5 6 7 8 9 10
Demand
SupplySR
Q
Buyer Surplus
Seller Surplus
![Page 102: 101 lecture 8](https://reader037.vdocuments.net/reader037/viewer/2022100221/5577791dd8b42a56728b4e76/html5/thumbnails/102.jpg)
0
10
20
30
40
50
60
70
80
90
100
0 1 2 3 4 5 6 7 8 9 10
Demand
SupplySR
Q
Buyer Surplus
Maximum Price
Seller Surplus
![Page 103: 101 lecture 8](https://reader037.vdocuments.net/reader037/viewer/2022100221/5577791dd8b42a56728b4e76/html5/thumbnails/103.jpg)
0
10
20
30
40
50
60
70
80
90
100
0 1 2 3 4 5 6 7 8 9 10
Demand
SupplySR
Q
Buyer Surplus
Maximum Price
Seller Surplus
![Page 104: 101 lecture 8](https://reader037.vdocuments.net/reader037/viewer/2022100221/5577791dd8b42a56728b4e76/html5/thumbnails/104.jpg)
0
10
20
30
40
50
60
70
80
90
100
0 1 2 3 4 5 6 7 8 9 10
Demand
SupplySR
Q
Buyer Surplus
Maximum Price
Seller Surplus
![Page 105: 101 lecture 8](https://reader037.vdocuments.net/reader037/viewer/2022100221/5577791dd8b42a56728b4e76/html5/thumbnails/105.jpg)
0
10
20
30
40
50
60
70
80
90
100
0 1 2 3 4 5 6 7 8 9 10
Demand
SupplySR
QQs
Buyer Surplus
Maximum Price
Seller Surplus
![Page 106: 101 lecture 8](https://reader037.vdocuments.net/reader037/viewer/2022100221/5577791dd8b42a56728b4e76/html5/thumbnails/106.jpg)
0
10
20
30
40
50
60
70
80
90
100
0 1 2 3 4 5 6 7 8 9 10
Demand
SupplySR
QQs
Buyer Surplus
Maximum Price
Seller Surplus
![Page 107: 101 lecture 8](https://reader037.vdocuments.net/reader037/viewer/2022100221/5577791dd8b42a56728b4e76/html5/thumbnails/107.jpg)
0
10
20
30
40
50
60
70
80
90
100
0 1 2 3 4 5 6 7 8 9 10
Demand
SupplySR
QQs
Buyer Surplus
Maximum Price
Seller Surplus
![Page 108: 101 lecture 8](https://reader037.vdocuments.net/reader037/viewer/2022100221/5577791dd8b42a56728b4e76/html5/thumbnails/108.jpg)
0
10
20
30
40
50
60
70
80
90
100
0 1 2 3 4 5 6 7 8 9 10
Demand
SupplySR
QQs Qd
Buyer Surplus
Maximum Price
Seller Surplus
![Page 109: 101 lecture 8](https://reader037.vdocuments.net/reader037/viewer/2022100221/5577791dd8b42a56728b4e76/html5/thumbnails/109.jpg)
0
10
20
30
40
50
60
70
80
90
100
0 1 2 3 4 5 6 7 8 9 10
Demand
SupplySR
QQs Qd
Buyer Surplus
Maximum Price
Seller Surplus
![Page 110: 101 lecture 8](https://reader037.vdocuments.net/reader037/viewer/2022100221/5577791dd8b42a56728b4e76/html5/thumbnails/110.jpg)
0
10
20
30
40
50
60
70
80
90
100
0 1 2 3 4 5 6 7 8 9 10
Demand
SupplySR
QQs QdShortage
Buyer Surplus
Maximum Price
Seller Surplus
![Page 111: 101 lecture 8](https://reader037.vdocuments.net/reader037/viewer/2022100221/5577791dd8b42a56728b4e76/html5/thumbnails/111.jpg)
0
10
20
30
40
50
60
70
80
90
100
0 1 2 3 4 5 6 7 8 9 10
Demand
SupplySR
QQs QdShortage 8-2 = 6
Buyer Surplus
Maximum Price
Seller Surplus
![Page 112: 101 lecture 8](https://reader037.vdocuments.net/reader037/viewer/2022100221/5577791dd8b42a56728b4e76/html5/thumbnails/112.jpg)
0
10
20
30
40
50
60
70
80
90
100
0 1 2 3 4 5 6 7 8 9 10
Demand
SupplySR
QQs QdShortage 8-2 = 6
Maximum Price
Seller Surplus
![Page 113: 101 lecture 8](https://reader037.vdocuments.net/reader037/viewer/2022100221/5577791dd8b42a56728b4e76/html5/thumbnails/113.jpg)
0
10
20
30
40
50
60
70
80
90
100
0 1 2 3 4 5 6 7 8 9 10
Demand
SupplySR
QQs QdShortage 8-2 = 6
Maximum Price
Seller Surplus
![Page 114: 101 lecture 8](https://reader037.vdocuments.net/reader037/viewer/2022100221/5577791dd8b42a56728b4e76/html5/thumbnails/114.jpg)
0
10
20
30
40
50
60
70
80
90
100
0 1 2 3 4 5 6 7 8 9 10
Demand
SupplySR
QQs QdShortage 8-2 = 6
A
Maximum Price
Seller Surplus
![Page 115: 101 lecture 8](https://reader037.vdocuments.net/reader037/viewer/2022100221/5577791dd8b42a56728b4e76/html5/thumbnails/115.jpg)
0
10
20
30
40
50
60
70
80
90
100
0 1 2 3 4 5 6 7 8 9 10
Demand
SupplySR
QQs QdShortage 8-2 = 6
A
B
Maximum Price
Seller Surplus
![Page 116: 101 lecture 8](https://reader037.vdocuments.net/reader037/viewer/2022100221/5577791dd8b42a56728b4e76/html5/thumbnails/116.jpg)
0
10
20
30
40
50
60
70
80
90
100
0 1 2 3 4 5 6 7 8 9 10
Demand
SupplySR
QQs QdShortage 8-2 = 6
A
BC
Maximum Price
Seller Surplus
![Page 117: 101 lecture 8](https://reader037.vdocuments.net/reader037/viewer/2022100221/5577791dd8b42a56728b4e76/html5/thumbnails/117.jpg)
0
10
20
30
40
50
60
70
80
90
100
0 1 2 3 4 5 6 7 8 9 10
Demand
SupplySR
QQs QdShortage 8-2 = 6
A
BC
D
Maximum Price
Seller Surplus
![Page 118: 101 lecture 8](https://reader037.vdocuments.net/reader037/viewer/2022100221/5577791dd8b42a56728b4e76/html5/thumbnails/118.jpg)
0
10
20
30
40
50
60
70
80
90
100
0 1 2 3 4 5 6 7 8 9 10
Demand
SupplySR
QQs QdShortage 8-2 = 6
A
BC
D E
Maximum Price
Seller Surplus
![Page 119: 101 lecture 8](https://reader037.vdocuments.net/reader037/viewer/2022100221/5577791dd8b42a56728b4e76/html5/thumbnails/119.jpg)
0
10
20
30
40
50
60
70
80
90
100
0 1 2 3 4 5 6 7 8 9 10
Demand
SupplySR
QQs QdShortage 8-2 = 6
A
BC
D E
FMaximum
Price
Seller Surplus
![Page 120: 101 lecture 8](https://reader037.vdocuments.net/reader037/viewer/2022100221/5577791dd8b42a56728b4e76/html5/thumbnails/120.jpg)
0
10
20
30
40
50
60
70
80
90
100
0 1 2 3 4 5 6 7 8 9 10
Demand
SupplySR
QQs QdShortage 8-2 = 6
A
BC
D E
FMaximum
Price
Seller Surplus
![Page 121: 101 lecture 8](https://reader037.vdocuments.net/reader037/viewer/2022100221/5577791dd8b42a56728b4e76/html5/thumbnails/121.jpg)
0
10
20
30
40
50
60
70
80
90
100
0 1 2 3 4 5 6 7 8 9 10
Demand
SupplySR
QQs QdShortage 8-2 = 6
A
BC
D E
FMaximum
Price
Seller Surplus
![Page 122: 101 lecture 8](https://reader037.vdocuments.net/reader037/viewer/2022100221/5577791dd8b42a56728b4e76/html5/thumbnails/122.jpg)
0
10
20
30
40
50
60
70
80
90
100
0 1 2 3 4 5 6 7 8 9 10
Demand
SupplySR
QQs QdShortage 8-2 = 6
A
BC
D E
F
Buyers Lose C to
deadweight loss but gain D from
Sellers
Maximum Price
Seller Surplus
![Page 123: 101 lecture 8](https://reader037.vdocuments.net/reader037/viewer/2022100221/5577791dd8b42a56728b4e76/html5/thumbnails/123.jpg)
0
10
20
30
40
50
60
70
80
90
100
0 1 2 3 4 5 6 7 8 9 10
Demand
SupplySR
QQs QdShortage 8-2 = 6
A
BC
D E
F
Buyers Lose C to
deadweight loss but gain D from
Sellers
Sellers Lose E to
deadweight loss and lose D to
buyers
Maximum Price
Seller Surplus
![Page 124: 101 lecture 8](https://reader037.vdocuments.net/reader037/viewer/2022100221/5577791dd8b42a56728b4e76/html5/thumbnails/124.jpg)
0
10
20
30
40
50
60
70
80
90
100
0 1 2 3 4 5 6 7 8 9 10
Demand
SupplySR
QQs QdShortage 8-2 = 6
A
BC
D E
F
Buyers Lose C to
deadweight loss but gain D from
Sellers
Sellers Lose E to
deadweight loss and lose D to
buyers
A = 20 B = 60 C = 45 D = 60 E = 45 F = 20
Maximum Price
Seller Surplus
![Page 125: 101 lecture 8](https://reader037.vdocuments.net/reader037/viewer/2022100221/5577791dd8b42a56728b4e76/html5/thumbnails/125.jpg)
0
10
20
30
40
50
60
70
80
90
100
0 1 2 3 4 5 6 7 8 9 10
Demand
Supply with no tax
Tax Analysis
![Page 126: 101 lecture 8](https://reader037.vdocuments.net/reader037/viewer/2022100221/5577791dd8b42a56728b4e76/html5/thumbnails/126.jpg)
0
10
20
30
40
50
60
70
80
90
100
0 1 2 3 4 5 6 7 8 9 10
Demand
Supply with no tax
Buyer Surplus
Tax Analysis
![Page 127: 101 lecture 8](https://reader037.vdocuments.net/reader037/viewer/2022100221/5577791dd8b42a56728b4e76/html5/thumbnails/127.jpg)
0
10
20
30
40
50
60
70
80
90
100
0 1 2 3 4 5 6 7 8 9 10
Demand
Supply with no tax
Buyer Surplus
Seller Surplus
Tax Analysis
![Page 128: 101 lecture 8](https://reader037.vdocuments.net/reader037/viewer/2022100221/5577791dd8b42a56728b4e76/html5/thumbnails/128.jpg)
0
10
20
30
40
50
60
70
80
90
100
0 1 2 3 4 5 6 7 8 9 10
Demand
Supply with no tax
Tax Analysis
Tax on Seller with shift Supply curve up by the amount of the tax
![Page 129: 101 lecture 8](https://reader037.vdocuments.net/reader037/viewer/2022100221/5577791dd8b42a56728b4e76/html5/thumbnails/129.jpg)
0
10
20
30
40
50
60
70
80
90
100
0 1 2 3 4 5 6 7 8 9 10
Demand
Supply with no tax
Tax Analysis
Tax on Seller with shift Supply curve up by the amount of the tax
Tax of 40 SAR
![Page 130: 101 lecture 8](https://reader037.vdocuments.net/reader037/viewer/2022100221/5577791dd8b42a56728b4e76/html5/thumbnails/130.jpg)
0
10
20
30
40
50
60
70
80
90
100
0 1 2 3 4 5 6 7 8 9 10
Demand
Supply with no tax
Tax Analysis
Tax on Seller with shift Supply curve up by the amount of the tax
Tax of 40 SAR
40
40
40
![Page 131: 101 lecture 8](https://reader037.vdocuments.net/reader037/viewer/2022100221/5577791dd8b42a56728b4e76/html5/thumbnails/131.jpg)
0
10
20
30
40
50
60
70
80
90
100
0 1 2 3 4 5 6 7 8 9 10
Demand
Supply with no tax
Tax AnalysisSupply
with 40 SAR tax
Tax on Seller with shift Supply curve up by the amount of the tax
Tax of 40 SAR
40
40
40
![Page 132: 101 lecture 8](https://reader037.vdocuments.net/reader037/viewer/2022100221/5577791dd8b42a56728b4e76/html5/thumbnails/132.jpg)
0
10
20
30
40
50
60
70
80
90
100
0 1 2 3 4 5 6 7 8 9 10
Demand
Supply with no tax
Tax AnalysisSupply
with 40 SAR tax
Tax on Seller with shift Supply curve up by the amount of the tax
Tax of 40 SAR
![Page 133: 101 lecture 8](https://reader037.vdocuments.net/reader037/viewer/2022100221/5577791dd8b42a56728b4e76/html5/thumbnails/133.jpg)
0
10
20
30
40
50
60
70
80
90
100
0 1 2 3 4 5 6 7 8 9 10
Demand
Supply with no tax
Tax AnalysisSupply
with 40 SAR tax
Tax on Seller with shift Supply curve up by the amount of the tax
Tax of 40 SAR
![Page 134: 101 lecture 8](https://reader037.vdocuments.net/reader037/viewer/2022100221/5577791dd8b42a56728b4e76/html5/thumbnails/134.jpg)
0
10
20
30
40
50
60
70
80
90
100
0 1 2 3 4 5 6 7 8 9 10
Demand
Supply with no tax
Tax AnalysisSupply
with 40 SAR tax
Tax on Seller with shift Supply curve up by the amount of the tax
Tax of 40 SAR
![Page 135: 101 lecture 8](https://reader037.vdocuments.net/reader037/viewer/2022100221/5577791dd8b42a56728b4e76/html5/thumbnails/135.jpg)
0
10
20
30
40
50
60
70
80
90
100
0 1 2 3 4 5 6 7 8 9 10
Demand
Supply with no tax
Tax AnalysisSupply
with 40 SAR tax
Tax on Seller with shift Supply curve up by the amount of the tax
Tax of 40 SAR
![Page 136: 101 lecture 8](https://reader037.vdocuments.net/reader037/viewer/2022100221/5577791dd8b42a56728b4e76/html5/thumbnails/136.jpg)
0
10
20
30
40
50
60
70
80
90
100
0 1 2 3 4 5 6 7 8 9 10
Demand
Supply with no tax
Tax AnalysisSupply
with 40 SAR tax
Tax on Seller with shift Supply curve up by the amount of the tax
Tax of 40 SAR
![Page 137: 101 lecture 8](https://reader037.vdocuments.net/reader037/viewer/2022100221/5577791dd8b42a56728b4e76/html5/thumbnails/137.jpg)
0
10
20
30
40
50
60
70
80
90
100
0 1 2 3 4 5 6 7 8 9 10
Demand
Supply with no tax
Tax AnalysisSupply
with 40 SAR tax
Tax on Seller with shift Supply curve up by the amount of the tax
Tax of 40 SAR
![Page 138: 101 lecture 8](https://reader037.vdocuments.net/reader037/viewer/2022100221/5577791dd8b42a56728b4e76/html5/thumbnails/138.jpg)
0
10
20
30
40
50
60
70
80
90
100
0 1 2 3 4 5 6 7 8 9 10
Demand
Supply with no tax
Tax AnalysisSupply
with 40 SAR tax
Tax on Seller with shift Supply curve up by the amount of the tax
Tax of 40 SAR
![Page 139: 101 lecture 8](https://reader037.vdocuments.net/reader037/viewer/2022100221/5577791dd8b42a56728b4e76/html5/thumbnails/139.jpg)
0
10
20
30
40
50
60
70
80
90
100
0 1 2 3 4 5 6 7 8 9 10
Demand
Supply with no tax
Tax AnalysisSupply
with 40 SAR tax
Tax on Seller with shift Supply curve up by the amount of the tax
Tax of 40 SAR
![Page 140: 101 lecture 8](https://reader037.vdocuments.net/reader037/viewer/2022100221/5577791dd8b42a56728b4e76/html5/thumbnails/140.jpg)
0
10
20
30
40
50
60
70
80
90
100
0 1 2 3 4 5 6 7 8 9 10
Demand
Supply with no tax
A
Tax AnalysisSupply
with 40 SAR tax
Tax on Seller with shift Supply curve up by the amount of the tax
Tax of 40 SAR
![Page 141: 101 lecture 8](https://reader037.vdocuments.net/reader037/viewer/2022100221/5577791dd8b42a56728b4e76/html5/thumbnails/141.jpg)
0
10
20
30
40
50
60
70
80
90
100
0 1 2 3 4 5 6 7 8 9 10
Demand
Supply with no tax
A
B
Tax AnalysisSupply
with 40 SAR tax
Tax on Seller with shift Supply curve up by the amount of the tax
Tax of 40 SAR
![Page 142: 101 lecture 8](https://reader037.vdocuments.net/reader037/viewer/2022100221/5577791dd8b42a56728b4e76/html5/thumbnails/142.jpg)
0
10
20
30
40
50
60
70
80
90
100
0 1 2 3 4 5 6 7 8 9 10
Demand
Supply with no tax
A
BC
Tax AnalysisSupply
with 40 SAR tax
Tax on Seller with shift Supply curve up by the amount of the tax
Tax of 40 SAR
![Page 143: 101 lecture 8](https://reader037.vdocuments.net/reader037/viewer/2022100221/5577791dd8b42a56728b4e76/html5/thumbnails/143.jpg)
0
10
20
30
40
50
60
70
80
90
100
0 1 2 3 4 5 6 7 8 9 10
Demand
Supply with no tax
A
BC
D
Tax AnalysisSupply
with 40 SAR tax
Tax on Seller with shift Supply curve up by the amount of the tax
Tax of 40 SAR
![Page 144: 101 lecture 8](https://reader037.vdocuments.net/reader037/viewer/2022100221/5577791dd8b42a56728b4e76/html5/thumbnails/144.jpg)
0
10
20
30
40
50
60
70
80
90
100
0 1 2 3 4 5 6 7 8 9 10
Demand
Supply with no tax
A
BC
D E
Tax AnalysisSupply
with 40 SAR tax
Tax on Seller with shift Supply curve up by the amount of the tax
Tax of 40 SAR
![Page 145: 101 lecture 8](https://reader037.vdocuments.net/reader037/viewer/2022100221/5577791dd8b42a56728b4e76/html5/thumbnails/145.jpg)
0
10
20
30
40
50
60
70
80
90
100
0 1 2 3 4 5 6 7 8 9 10
Demand
Supply with no tax
A
BC
D E
F
Tax AnalysisSupply
with 40 SAR tax
Tax on Seller with shift Supply curve up by the amount of the tax
Tax of 40 SAR
![Page 146: 101 lecture 8](https://reader037.vdocuments.net/reader037/viewer/2022100221/5577791dd8b42a56728b4e76/html5/thumbnails/146.jpg)
0
10
20
30
40
50
60
70
80
90
100
0 1 2 3 4 5 6 7 8 9 10
Demand
Supply with no tax
A
BC
D E
F
Tax AnalysisSupply
with 40 SAR tax
Tax on Seller with shift Supply curve up by the amount of the tax
Tax of 40 SAR
![Page 147: 101 lecture 8](https://reader037.vdocuments.net/reader037/viewer/2022100221/5577791dd8b42a56728b4e76/html5/thumbnails/147.jpg)
0
10
20
30
40
50
60
70
80
90
100
0 1 2 3 4 5 6 7 8 9 10
Demand
Supply with no tax
A
BC
D E
F
Tax AnalysisSupply
with 40 SAR tax
Tax on Seller with shift Supply curve up by the amount of the tax
Tax of 40 SAR
![Page 148: 101 lecture 8](https://reader037.vdocuments.net/reader037/viewer/2022100221/5577791dd8b42a56728b4e76/html5/thumbnails/148.jpg)
0
10
20
30
40
50
60
70
80
90
100
0 1 2 3 4 5 6 7 8 9 10
Demand
Supply with no tax
A
BC
D E
F
Tax AnalysisSupply
with 40 SAR tax
Tax on Seller with shift Supply curve up by the amount of the tax
Tax of 40 SAR
![Page 149: 101 lecture 8](https://reader037.vdocuments.net/reader037/viewer/2022100221/5577791dd8b42a56728b4e76/html5/thumbnails/149.jpg)
0
10
20
30
40
50
60
70
80
90
100
0 1 2 3 4 5 6 7 8 9 10
Demand
Supply with no tax
A
BC
D E
F
Tax AnalysisSupply
with 40 SAR tax
Tax on Seller with shift Supply curve up by the amount of the tax
Taxes Tax of 40 SAR
![Page 150: 101 lecture 8](https://reader037.vdocuments.net/reader037/viewer/2022100221/5577791dd8b42a56728b4e76/html5/thumbnails/150.jpg)
0
10
20
30
40
50
60
70
80
90
100
0 1 2 3 4 5 6 7 8 9 10
Demand
Supply with no tax
A
BC
D E
F
Buyers Lose C to
deadweight loss and lose B to
taxes
Tax AnalysisSupply
with 40 SAR tax
Tax on Seller with shift Supply curve up by the amount of the tax
Taxes Tax of 40 SAR
![Page 151: 101 lecture 8](https://reader037.vdocuments.net/reader037/viewer/2022100221/5577791dd8b42a56728b4e76/html5/thumbnails/151.jpg)
0
10
20
30
40
50
60
70
80
90
100
0 1 2 3 4 5 6 7 8 9 10
Demand
Supply with no tax
A
BC
D E
F
Buyers Lose C to
deadweight loss and lose B to
taxes
Sellers Lose E to
deadweight loss and lose D to
taxes
Tax AnalysisSupply
with 40 SAR tax
Tax on Seller with shift Supply curve up by the amount of the tax
Taxes Tax of 40 SAR
![Page 152: 101 lecture 8](https://reader037.vdocuments.net/reader037/viewer/2022100221/5577791dd8b42a56728b4e76/html5/thumbnails/152.jpg)
0
10
20
30
40
50
60
70
80
90
100
0 1 2 3 4 5 6 7 8 9 10
Demand
Supply with no tax
A
BC
D E
F
Buyers Lose C to
deadweight loss and lose B to
taxes
Sellers Lose E to
deadweight loss and lose D to
taxes
Tax AnalysisSupply
with 40 SAR tax
Tax on Seller with shift Supply curve up by the amount of the tax
TaxesGovernment gains B from buyers and D from sellers
Tax of 40 SAR