(3).The substitution effect is how demand changes when prices change and purchasing power is held constant,in the sense that the original bundle emains affordable.To hold real purchasing power constant.money will have ge.The necessary change in money income is given by△m=xl△pl (4).The Slutsky equation says that the total change in demand is the sum of the substation effect and the income effect. (5).The Law of Demand says that normal goods must have ward-sloping demand curve (三) 课后练习 1.Suppose a consumer has preferences between two goods that are perfect substitutes.Can ou change price in such a way that the entire dem and response is due to the income Suppose that preferences are concave.Is it still the case that the substitution effect is negative? (四)教学方法与手段 课堂讲授与讨论。 第九章Consumer's Surplus (一)目的与要求 1 Examine to construct utility from demand 2.Examine the change in consumer surplus 3.Introduce the producer surplus 4.Master the relationship between consumer surplus and Socialist Core (二)教学内容 1.主要内容 9-1 Demand For a Discrete Good 9-2 Constructing Utility From Demand 9-3 Other Interpretations Of Consumer's Surplus 94 From Consumer's Surplus To Consumer's Surplus 9-5 Approximating a continuous Demand 9-6 Ouasilinear Utility 9-7 Interpreting The Change In Consumer's Surplus 9-8 Compen ing And Equivalent Variation 9-9 Pr ducer's Surplus 9-10 Calculating Gains And Losses
11 (3). The substitution effect is how demand changes when prices change and purchasing power is held constant ,in the sense that the original bundle remains affordable. To hold real purchasing power constant, money income will have change. The necessary change in money income is given by △m = x1△p1. (4). The Slutsky equation says that the total change in demand is the sum of the substation effect and the income effect. (5). The Law of Demand says that normal goods must have downward-sloping demand curves. （三） 课后练习 1. Suppose a consumer has preferences between two goods that are perfect substitutes. Can you change price in such a way that the entire demand response is due to the income effect? 2. Suppose that preferences are concave. Is it still the case that the substitution effect is negative? （四） 教学方法与手段 课堂讲授与讨论。 第九章 Consumer’s Surplus （一） 目的与要求 1. Examine to construct utility from demand 2. Examine the change in consumer surplus 3. Introduce the producer surplus 4. Master the relationship between consumer surplus and Socialist Core Values （二） 教学内容 1. 主要内容 9-1 Demand For a Discrete Good 9-2 Constructing Utility From Demand 9-3 Other Interpretations Of Consumer’s Surplus 9-4 From Consumer’s Surplus To Consumer’s Surplus 9-5 Approximating a Continuous Demand 9-6 Quasilinear Utility 9-7 Interpreting The Change In Consumer’s Surplus 9-8 Compensating And Equivalent Variation 9-9 Producer’s Surplus 9-10 Calculating Gains And Losses
9-11 Benefit Cost Analysis 9-12 The relationship between consumer surplus and Socialist Core Value 2.基本概念和知识点 基本概念 Consumer's surplus Net consumer's surplus Supply curve Effective price Price ceiling Producer's surplus 知识点 (1).Inthe case of a discrete good and quasilinear utility,the utility associated with consumption ofn unites of the discrete good is just (2).This sum is the gros co ing the good.If we subtract the amount spent on the purchase of the good,we get the consumer's surplus. (3).The change in consumer's surplus associated with a price change has a roughly trapezoidal shape It can be interpreted as the change in utility ssociated with the pri echange (4).In general,we can use the compensating variation and the equivalent variation in income to measure the monetary impact of a price change (5).Ifutility is quasilinear.the compensating variation,the equivalent variation,and the change in consumer's surplus are all equal .Even if utility is not quasilinear the change in consumer's surplus may serve as a good a proximation of the impact of the price change on a consumer's utility. (6).In the case of supply behavior we can define a producer's surplus that measures the net benefits to the supplier from producing a given amount of output (三) 课后练习 1.Suppose that the demand curve is given by D(p)=10-p.what is the gross benefit form consuming 6 units of the good 2.In the above example,if the price changes form 4to 6,what the changes in consumer's surplus? (四) 教学方法与手段 课堂讲授与讨论。 第十章Market Demand (一) 目的与要求 12
12 9-11 Benefit Cost Analysis 9-12 The relationship between consumer surplus and Socialist Core Values 2. 基本概念和知识点 基本概念 Consumer’s surplus Net consumer’s surplus Supply curve Effective price Price ceiling Producer’s surplus 知识点 (1). In the case of a discrete good and quasilinear utility, the utility associated with consumption of n unites of the discrete good is just the sum of first n reservation prices. (2). This sum is the gross benefit of consuming the good. If we subtract the amount spent on the purchase of the good, we get the consumer’s surplus . (3). The change in consumer’s surplus associated with a price change has a roughly trapezoidal shape .It can be interpreted as the change in utility associated with the price change. (4). In general, we can use the compensating variation and the equivalent variation in income to measure the monetary impact of a price change. (5). If utility is quasilinear, the compensating variation, the equivalent variation, and the change in consumer’s surplus are all equal .Even if utility is not quasilinear ,the change in consumer’s surplus may serve as a good approximation of the impact of the price change on a consumer’s utility. (6). In the case of supply behavior we can define a producer’s surplus that measures the net benefits to the supplier from producing a given amount of output. （三） 课后练习 1. Suppose that the demand curve is given by D(p) = 10 - p. what is the gross benefit form consuming 6 units of the good ? 2. In the above example, if the price changes form 4 to 6 ,what the changes in consumer’s surplus? （四） 教学方法与手段 课堂讲授与讨论。 第十章 Market Demand （一） 目的与要求