•Consumer surplus: the difference between what consumers are willing to pay and the price they pay for it. Calculated as the area under the demand curve and above the market price up to the quantity consumers buy. •Producer surplus: the difference between the amount for which a good sells and the minimum amount necessary for sellers to be willing to produce the good. •Deadweight loss: a net reduction in welfare from losses of surplus by one group that are not offset by gains to another group. •Subsidy: a payment for the pruchase of a good; the opposite of a tax. •Tariff: a tax levied on imported goods. •Quota: a statutory limit on the amount imported. •Rent seeking: effort and spending done to gain rent or profit from government action.
Chapter 9
Applying the Competitive Model
Perloff, Microeconomics 3rd edition
Figure 9.1 Consumer
Surplus
Figure 9.1a Consumer Surplus
Figure 9.1b Consumer Surplus
Figure 9.2 Fall in Consumer Surplus From Roses as Price
Rises
Table 9.1 Effect of a 10% Increase in Price on Consumer Surplus (Revenue and Consumer Surplus in Billions of
1999 Dollars)
Page 278 Solved Problem 9.1
Figure 9.3 Producer Surplus
Figure 9.3a Producer Surplus
Figure 9.3b Producer Surplus
Page 281 Solved Problem 9.2
Figure 9.4 Why Reducing Output from the Competitive Level Lowers
Welfare
Figure 9.5 Why Increasing Output from the Competitive Level Lowers
Welfare
Figure 9.6 Effect of a Restriction on the Number of
Cabs
Figure 9.7 Welfare Effects of a Specific Tax on Roses
Figure 9.8 Welfare Effects of a Per-Unit Subsidy on Roses
Figure 9.9 Effect of Pricing Supports in
Soybeans
Page 298 Solved Problem 9.3
Page 300 Solved Problem 9.4
Figure 9.10 Loss from Eliminating Free Trade
Figure 9.11 Effect of a Tariff (or Quota)
Table 9.2 Welfare Cost of Trade Barriers (millions of 1999
Dollars)
Chapter 18
Externalities, Commons, and Public Goods
Figure 18.1 Welfare Effects of Pollution in a Competitive Market
Table 18.1
Industrial CO2
Emissions, 1998
Figure 18.2 Taxes to Control Pollution
Figure 18.3 Cost-
Benefit Analysis
of Pollution
Application (Page 634) Emissions Standards for Ozone
Figure 18.4 Monopoly, Competition, and Social Optimum
with Polution
Table 18.2 Property Rights
and Bargaining
Table 18.2a Property Rights and Bargaining
Table 18.2b Property Rights and Bargaining
Table 18.2c Property Rights and Bargaining
Table 18.3 Rivalry and Exclusion
Figure 18.5 Inadequate Provision of a Public Good
Table 18.4 Private Payments for a Public
Good
Table 18.5 Voting on $300 Traffic Signals
Cross-Chapter Analysis (Page 657)Emissions Fees Versus Standards