经济代写|微观经济学代写Microeconomics代考|ECON106

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经济代写|微观经济学代写Microeconomics代考|Substitution at Work

In the first of these examples, we focus on the role of substitution. When the price of a good or service goes up, rational consumers generally turn to less expensive substitutes. Can’t meet the payments on a new car? Then buy a used one, or rent an apartment on a bus or subway line. French restaurants too pricey? Then go out for Chinese, or eat at home more often. National Football League tickets too high? Watch the game on television, or read a book. Can’t afford a book? Check one out of the library, or download some reading matter from the Internet. Once you begin to see substitution at work, you’ll be amazed by the number and richness of the examples that confront you every day.

Among his many residences, Amazon CEO Jeff Bezos owns a 29,000-square-foot home in Medina, Washington. Bezos also owns a 17,000-square-foot apartment in Manhattan. Although both residences are enormous, Bezos’s apartment in Manhattan is much smaller than his home in Medina. Bezos is one of the richest people in the world, so why would he choose to purchase a much smaller home in Manhattan than Medina?

For people trying to decide how large a home to buy, the most obvious difference between Manhattan and Medina is the huge difference in housing prices. The cost of land alone is several times higher in Manhattan than in Medina, and construction costs are also much higher. So even though Bezos could afford to purchase a 29,000-square-foot home in Manhattan, housing prices are so high that he simply chooses to purchase a smaller home and spend his fortune in other ways.

Here we note in passing that an additional factor in Bezos’s decision may have been the link between context and evaluation: A house seems small only if it is small relative to other houses in the same local environment. Because Manhattan prices are so high, others choose to build smaller houses there, too, so a 17,000-square-foot house in Manhattan is a larger dwelling, in relative terms, than a 29,000-square-foot house in Medina. We will discuss this point more thoroughly in Chapter 8, An Introduction to Behavioral Economics.

An especially vivid illustration of substitution occurred during the late 1970 s, when fuel shortages brought on by interruptions in the supply of oil from the Middle East led to sharp increases in the price of gasoline and other fuels. In a variety of ways-some straightforward, others remarkably ingenious-consumers changed their behavior to economize on the use of energy. They formed carpools; switched to public transportation; bought four-cylinder cars; moved closer to work; took fewer trips; turned down their thermostats; installed insulation, storm windows, and solar heaters; and bought more efficient appliances. Many people even moved farther south to escape high winter heating bills.

As the next example points out, consumers not only abandon a good in favor of substitutes when it gets more expensive, but they also return to that good when prices return to their original levels.

经济代写|微观经济学代写Microeconomics代考|Elasticity and Total Expenditure

The pattern observed in the preceding example holds true in general. For a straight-line demand curve, total expenditure is highest at the price that lies on the midpoint of the demand curve.

Bearing in mind these observations about how expenditure varies with price, let’s return to the question of how the effect of a price change on total expenditure depends on the price elasticity of demand. Suppose, for example, that the business manager of a rock band knows she can sell 5,000 tickets to the band’s weekly summer concerts if she sets the price at $\$ 20$ per ticket. If the elasticity of demand for tickets is equal to 3 , will total ticket revenue go up or down in response to a 10 percent increase in the price of tickets?

Total revenue from tickets sold is currently $(\$ 20 /$ ticket $) \times(5,000$ tickets $/$ week $)=$ $\$ 100,000$ per week. The fact that the price elasticity of demand for tickets is 3 implies that a 10 percent increase in price will produce a 30 percent reduction in the number of tickets sold, which means that quantity will fall to 3,500 tickets per week. Total expenditure on tickets will therefore fall to $(3,500$ tickets/week $) \times(\$ 22 /$ ticket $)=$ $\$ 77,000$ per week, which is significantly less than the current spending total.

What would have happened to total expenditure if the band manager had reduced ticket prices by 10 percent, from $\$ 20$ to $\$ 18$ ? Again assuming a price elasticity of 3 , the result would have been a 30 percent increase in tickets sold-from 5,000 per week to 6,500 per week. The resulting total expenditure would have been ( $\$ 18$ / ticket $) \times(6,500$ tickets $/$ week $)=\$ 117,000$ per week, significantly more than the current total.

These examples illustrate the following important rule about how price changes affect total expenditure for an elastically demanded good:

Rule 1: When price elasticity of demand is greater than 1, changes in price and changes in total expenditure always move in opposite directions.

Let’s look at the intuition behind this rule. Total expenditure is the product of price and quantity. For an elastically demanded product, the percentage change in quantity will be larger than the corresponding percentage change in price. Thus the change in quantity will more than offset the change in revenue per unit sold.

Now let’s see how total spending responds to a price increase when demand is inelastic with respect to price. Consider a case like the one just considered except that the elasticity of demand for tickets is not 3 but $0.5$. How will total expenditure respond to a 10 percent increase in ticket prices? This time the number of tickets sold will fall by only 5 percent to 4,750 tickets per week, which means that total expenditure on tickets will rise to $(4,750$ tickets/week $) \times(\$ 22$ /ticket $)=\$ 104,500$ per week, or $\$ 4,500$ per week more than the current expenditure level.

经济代写|微观经济学代写Microeconomics代考|ECON106

微观经济学代考


经济代写|微观经济学代写微观经济学代考|工作中的替代


在第一个例子中,我们关注替换的作用。当一种商品或服务的价格上涨时,理性的消费者通常会转向更便宜的替代品。买不起新车?然后买一辆二手的,或者租一套公交或地铁上的公寓。法国餐厅太贵?那就多出去吃中餐,或者在家吃饭。国家橄榄球联盟门票太高?在电视上看比赛,或者看书。买不起书?从图书馆借一本,或者从网上下载一些阅读材料。一旦你开始在工作中看到替代,你就会惊讶于你每天面对的例子的数量和丰富程度


亚马逊首席执行官杰夫·贝佐斯的众多住宅中,有一座位于华盛顿麦地那的2.9万平方英尺的住宅。贝佐斯在曼哈顿还有一套1.7万平方英尺的公寓。虽然这两处住所都很大,但贝佐斯在曼哈顿的公寓比他在麦地那的家要小得多。贝佐斯是世界上最富有的人之一,那么他为什么会选择在曼哈顿买一个比麦地那小得多的房子呢?


对于那些试图决定买多大房子的人来说,曼哈顿和麦地那最明显的区别就是房价的巨大差异。曼哈顿仅土地成本就比麦地那高几倍,建筑成本也高得多。因此,尽管贝佐斯有能力在曼哈顿购买一套29,000平方英尺的房子,但由于房价太高,他只能选择购买一套较小的房子,把他的财富花在其他方面


在这里,我们顺便指出,贝佐斯决定的另一个因素可能是环境和评价之间的联系:只有当一幢房子相对于同一当地环境中的其他房子小时,它才显得小。因为曼哈顿的房价太高,其他人也会选择在那里建造较小的房子,所以相对而言,曼哈顿1.7万平方英尺的房子比麦地那2.9万平方英尺的房子更大。我们将在第8章“行为经济学导论”中更深入地讨论这一点


关于替代的一个特别生动的例子发生在20世纪70年代末,当时中东石油供应的中断导致燃料短缺,导致汽油和其他燃料的价格急剧上涨。消费者通过各种方式——有些直接,有些非常巧妙——改变他们的行为以节约能源使用。他们合伙用车;转向公共交通;买了四缸汽车;搬到离工作地点更近的地方;减少旅行次数;调低他们的恒温器;安装绝缘材料、防风窗和太阳能加热器;购买了更高效的电器。为了逃避冬季高昂的取暖费,许多人甚至搬到了更远的南方


正如下一个例子所指出的,当一种商品变得更贵时,消费者不仅放弃它而选择替代品,而且当价格回到原来的水平时,他们也会重新购买那种商品

经济代写|微观经济学代写微观经济学代考|弹性和总支出

.


在前面的例子中观察到的模式在一般情况下是正确的。对于直线需求曲线,总支出在位于需求曲线中点的价格处最高


记住这些关于支出如何随价格变化的观察,让我们回到价格变化对总支出的影响如何取决于需求的价格弹性这个问题。例如,假设一个摇滚乐队的业务经理知道,如果将每张票的价格定为$\$ 20$,她可以卖出5000张该乐队夏季每周音乐会的门票。如果票务需求的弹性等于3,总票务收入会随着票务价格上涨10%而上升还是下降?


门票销售的总收入目前是$(\$ 20 /$票$) \times(5,000$票$/$周$)=$$\$ 100,000$每周。门票需求的价格弹性为3这一事实意味着,价格每上涨10%,售出的门票数量将减少30%,这意味着数量将下降到每周3500张。因此,机票的总支出将降至$(3,500$票/周$) \times(\$ 22 /$票$)=$$\$ 77,000$ /周,这明显低于目前的支出总额

如果乐队经理将票价从$\$ 20$降至$\$ 18$,降低10%,总支出会发生什么变化?同样假设价格弹性为3,结果将是30%的门票销售增长——从每周5000张增加到每周6500张。由此产生的总开支将是($\$ 18$ /门票$) \times(6,500$门票$/$周$)=\$ 117,000$每周,明显多于目前的总数。


这些例子说明了以下关于价格变化如何影响弹性需求商品的总支出的重要规则

规则一:当需求的价格弹性大于1时,价格的变化和总支出的变化总是相反的方向


让我们看看这条规则背后的直觉。总支出是价格和数量的乘积。对于弹性需求的产品,数量变化的百分比将大于相应的价格变化百分比。因此,数量的变化将超过单位销售收入的变化


现在让我们看看当需求相对于价格无弹性时,总支出如何响应价格上涨。考虑一个像刚才考虑的例子,除了门票的需求弹性不是3,而是$0.5$。总支出将如何应对10%的票价上涨?这一次,售出的门票数量将仅下降5%,至每周4750张,这意味着门票的总支出将上升到$(4,750$张/周$) \times(\$ 22$ /票$)=\$ 104,500$ /周,或$\$ 4,500$ /周比目前的支出水平

经济代写|微观经济学代写Microeconomics代考

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