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6
Supply, Demand, and
Government Policies
Economics
PRINCIPLES OF
N. Gregory Mankiw
Rental P S
price of
apts
$800
Eq’m w/o
price
controls
D
Q
300
Quantity of
apartments
SUPPLY, DEMAND, AND GOVERNMENT POLICIES 2
How Price Ceilings Affect Market Outcomes
A price ceiling P
above the S
Price
eq’m price is $1000
ceiling
not binding –
has no effect $800
on the market
outcome.
D
Q
300
Wage W S
paid to
unskilled
workers
$4
Eq’m w/o
price
controls
D
L
500
Quantity of
unskilled workers
SUPPLY, DEMAND, AND GOVERNMENT POLICIES 7
How Price Floors Affect Market Outcomes
A price floor W
below the S
eq’m price is
not binding –
has no effect $4
on the market
Price
outcome. $3
floor
D
L
500
Eq’m
w/o tax P
S1
$10.00
D1
Q
500
P
lebih mudah
penjual daripada
PB pembeli
S
Buyers’ share
meninggalkan
of tax burden
Tax pasar. sehingga
Price if no tax pembeli
menanggung
Sellers’ share PS sebagian besar
of tax burden
beban pajak.
D
Q
Tax Hence,
companies
Sellers’ share
that build
of tax burden PS
D yachts pay
most of
Q the tax.
Harga Qd Qd
(pendapatan;$10.000) (pendapatan; $12.000)
8$ 40 50
10 32 45
12 24 30
14 16 20
16 8 12