中微课件范里安版 Micro Ch14.ppt

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1、ChapterFourteenConsumer’sSurplusWhatDoWeDoinThisChapter?Afterstudyingconsumer’schoices,wenowexamineconsumer’swelfareThekeyquestionis:Howmuchhasaconsumergainedinwelfarefrompurchasingcertainunitsofagood?Threesuchmeasuresare:Consumer’sSurplusEquivalentVariation,andCompensatingVariati

2、on.Onlyinonespecialcircumstancedothesethreemeasurescoincide.MonetaryMeasuresofGains-to-TradeSupposericecanbeboughtonlyinlumpsofonekilogram.User1todenotethemostasingleconsumerwouldpayfora1stkilogram--callthisherreservationpriceforthe1stkilogram.r1isthedollarequivalentofthemarginalu

3、tilityofthe1stkilogram.MonetaryEquivalentUtilityGainsNowthatshehasonekilogram,user2todenotethemostshewouldpayfora2ndkilogram--thisisherreservationpriceforthe2ndkilogram.r2isthedollarequivalentofthemarginalutilityofthe2ndgallon.MonetaryEquivalentUtilityGainsGenerally,ifshealreadyha

4、sn-1kilogramsofricethenrndenotesthemostshewillpayforannthkilogram.rnisthedollarequivalentofthemarginalutilityofthenthkilogram.MonetaryEquivalentUtilityGainsr1+…+rnwillthereforebethedollarequivalentofthetotalchangetoutilityfromacquiringnkilogramsofriceatapriceof$0.Sor1+…+rn-pGnwill

5、bethedollarequivalentofthetotalchangetoutilityfromacquiringnkilogramsofriceatapriceof$pGeach.MonetaryEquivalentUtilityGainsAplotofr1,r2,…,rn,…againstnisareservation-pricecurve.Thisisnotquitethesameastheconsumer’sdemandcurveforrice.MonetaryEquivalentUtilityGainsMonetaryEquivalentUt

6、ilityGains123456r1r2r3r4r5r6Whatisthemonetaryvalueofourconsumer’sgain-to-tradinginthericemarketatapriceof$pG?MonetaryEquivalentUtilityGainsThedollarequivalentnetutilitygainforthe1stkilogramis$(r1-pG)andis$(r2-pG)forthe2ndkilogram,andsoon,sothedollarvalueofthegain-to-tradeis$(r1-p

7、G)+$(r2-pG)+…foraslongasrn-pG>0.MonetaryEquivalentUtilityGainsMonetaryEquivalentUtilityGains123456r1r2r3r4r5r6pGMonetaryEquivalentUtilityGains123456r1r2r3r4r5r6pG$valueofnetutilitygains-to-tradeSupposericecanbepurchasedinanycontinuousquantitythen...MonetaryEquivalentUtilityGainsM

8、onetaryEquivalentUtilityGainsRice