In practice,kidneys are often rationed on the basis of willingness to pay,and many recipients pay most or all of the $40000 price that clears the market when supply is constrained.Rectangles A and D measure the total value of kidneys when supply is constrained
In practice, kidneys are often rationed on the basis of willingness to pay, and many recipients pay most or all of the $40000 price that clears the market when supply is constrained. Rectangles A and D measure the total value of kidneys when supply is constrained
9.3 The Minimum Wage Price F Pmin A Po E 大梯形D D Q3 Qo Q2 Quantity The Price Minimum
9.3 The Minimum Wage The Price Minimum A B C 大梯形D w t E F
Price is regulated to be no lower than Pmin.Producers would like to supply Q2,but consumers will buy only Q3.If producers indeed produce Q2,the amount Q2-Q3 will go unsold and the change in producer surplus will be A-C-D.In this case,producers as a group may be worse off
Price is regulated to be no lower than Pmin. Producers would like to supply Q2 , but consumers will buy only Q3 . If producers indeed produce Q2 , the amount Q2 – Q3 will go unsold and the change in producer surplus will be A - C - D. In this case, producers as a group may be worse off
wV S E WUmin A B wo D L1 Lo L2 L Unemployment The Minimum Wage
The Minimum Wage A B C D E
Although the market-clearing wage is wo,firms are not allowed to pay less than wmin This results in unemployment of an amount L2-L and a deadweight loss given by triangles B and C
Although the market-clearing wage is w0 , firms are not allowed to pay less than wmin. This results in unemployment of an amount L2 - L1 and a deadweight loss given by triangles B and C