(2).The change in demand due to the change in relative prices is called the substitution effect;the change due to the change in purchasing power is called the income effect (3).The substitution et is how demand changes when prices change 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=xl△pl (4).The Slutsky equatior the substation effe hat the totchange in demand is the sum of (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。 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 91 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 and Appr a Continuous D 9-6 Quasilinear U Jtility 9-7 Interpreting The Change In Consumer's Surplus 9-8 Compensating And Equivalent Variation 11
11 (2). The change in demand due to the change in relative prices is called the substitution effect; the change due to the change in purchasing power is called the income effect. (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。 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 912 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 ofa discrete good and quasilinear utility,the utility associate with consumption 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 inc umer's surplu sassociated with a price cha inge has a roughly trapezoidal shape It can be interpreted as the change n 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).Ifutility is quasilinear,the compensating variation,the equivalent variation,and the change in co onsumer'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 definea producer's surplus that s the ne efits to the supplier from producing a given amoun (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 6units 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 12
12 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 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