PPT-Quality, Quantity, and Price:

Implications for Taxing Unhealthy Items John Gibson University of Waikato Motu PPS Wellington December 1 2016 Introduction Taxes on unhealthy items like sugarsweetened beverages SSBs are increasingly advocated. QUESTION: CAN A BUSINESS ALWAYS INCREASE REVENUES BY INCREASING PRICES?. MOST PEOPLE WOULD SAY. “YES”. BUT, REMEMBER THE “DEMAND CURVE”. BUYERS WILL RESPOND – BUY LESS WHEN PRICE UP; BUY MORE WHEN PRICE DOWN. Taggert J. Brooks. Module 08. Supply and demand: . Price Controls. Why Governments Control Prices. The market price moves to the level at which the quantity supplied equals the quantity demanded.. BUT . Quotas. Students will analyze the implications of a quota system in the real world to demonstrate understanding of a quota. NYC Taxi Medallion. 1930s = 11,787. 2014 = 13,257. Issued for a fee of $10.00 per license. Quotas. Students will analyze the implications of a quota system in the real world to demonstrate understanding of a quota. NYC Taxi Medallion. 1930s = 11,787. 2014 = 13,257. Issued for a fee of $10.00 per license. Introduction to Demand. In the United States, the forces of supply and demand work together to set prices. . Demand. is the desire, willingness, and ability to buy a good or service.. one individual consumer OR. Chapter 4. Outline. Equilibrium and the Adjustment Process. A Free Market Maximizes Producer . Plus Consumer . Surplus (the Gains from . Trade. ). Does the Model Work? Evidence . from the . Laboratory. AP Microeconomics. Rixie. Unit 2, Day 1. The Law of Demand tells us that we will buy less of a product if the price increases, but how much less?. Price Elasticity of Demand . A way to measure the responsiveness or sensitivity of consumers to a price change. The Basic Decision-Making Units. A . firm. is an organization that transforms resources (inputs) into products (outputs). Firms are the primary producing units in a market economy.. An . entrepreneur. I. . A change in demand. II. A change in supply.  . I . only . B) II only . C. ) Both I and II . D. ) Neither I nor II. If other factors are held constant, a decrease in supply . causes. quantity . supplied to decrease. . THIRD EDITION. ECONOMICS. and. MACROECONOMICS. Paul Krugman | Robin Wells. What a . competitive market . is and how it is described by the . supply and demand model. What the . demand curve . and . supply curve . by Casey B. Mulligan and Kevin K. . Tsui. Types of price regulation. Joint price-quantity regulation. Conscription = price ceiling supply mandate. Price ceiling with limits on purchasing. Price floor with limits on selling. Fundamentals of. Consumer Choice. Fundamentals of Consumer Choice. Factors affecting choice. :. Limited income necessitates choice.. Consumers make choices purposefully.. One good can be substituted for another.. Elasticity Chapter 6 THIRD EDITION ECONOMICS and MICROECONOMICS Paul Krugman | Robin Wells What is the definition of elasticity? What is the meaning and importance of: price elasticity of demand? income elasticity of demand? Prof Pallabi. Mukherjee. PALLABI MUKHERJEE. PALLABI MUKHERJEE. Demand. A relation between the price of a good and the quantity that . consumers. are . willing . and . able. to buy during a given period, other things constant.