章節(jié)3濟學cfa一級培訓項目

TopicWeightingsinCFALevelStudySessionEthics&ProfessionalStudySessionQuantitativeStudySessionTopicWeightingsinCFALevelStudySessionEthics&ProfessionalStudySessionQuantitativeStudySessionEconomicStudySessionFinancialStatementStudySessionCorporate8StudySessionPortfolio5StudySessionEquityStudySessionFixedIncomeStudySessionDerivative5StudySessionAlternative3FrameworkofFrameworkofSS4MicroeconomicR13demandandsupply: R14demandandsupply:consumerdemandR15demandandsupply:theR16thefirmandthemarketSS5MacroeconomicR17aggregateoutput,price,andeconomicR18understandbusinessR19monetaryandfiscalSS6EconomicsinaGlobalR20internationaltradeandcapitalR21currencyexchangeR13DemandandR13DemandandSupply:TypesofDemand&SupplyConsumer&ProducerMarketTypesofGoodsmarkets:TypesofGoodsmarkets:foroutputofproduction(finishedgoods&buyer:householdsseller:Intermediategoods:usedintheproductionoffinaleg:computerFactormarkets:forfactorsofbuyer:seller:eg:land,labor,physicalcapital,Capitalmarkets：usedbyfirmstoselldebtorequitytoraiselong-termcapitaltofinancetheproductionTheDemandthequantityofdemandeddependsonincome,thepricesofotherTheDemandthequantityofdemandeddependsonincome,thepricesofothergoods,aswellasotherfactorsQdx=f(pX,I,pQDgas=9-1.5Pgas+0.02I+0.11PBT-0.008Pauto(BT:BusTravelQDgas=12.34-1.5Pgas(demandInverttheP=8.23-0.667QDgas(inversedemandThegraphoftheinversedemandfunctioniscalledthedemandTheslopeofdemandcurveis-LawofdemanddecreasedasthepriceDemandDemandfunction:QgasDemandDemandfunction:Qgas=12.34-InverseDemandfunction:Pgas=8.23-TheSupplyThequantitysupplydependsonthesellingprice,thecostsofproductionwhichdependontechnology,thecostoflabor,andthecostofotherinputsintotheproductionprocess.TheSupplyThequantitysupplydependsonthesellingprice,thecostsofproductionwhichdependontechnology,thecostoflabor,andthecostofotherinputsintotheproductionprocess.Qsx=f(PX,tables=-300+1.5Ptables-8W-AssumingW=12,P=-426+1.5Ptables(SupplyInverttheP=284+0.667Qtables(InverseSupplyThegraphoftheinversesupplyfunctioniscalledthesupplyTheslopeofthesupplycurveisLawofsupplyincreasedasthepriceSupplySupplySupplySupplyfunction:QInversesupplyfunctionShiftsinandMovementsalongDemandand MovementsalongdemandandShiftsinandMovementsalongDemandand Movementsalongdemandandsupplycurves.沿著需求（供給）AchangeinthemarketpricethatsimplyincreasesordecreasesquantitysuppliedordemandedisrepresentedbyamovementtheShiftsindemandandsupplycurves.需求（供給）AchangeinoneoftheindependentvariablesotherthanpriceresultinashiftofthecurveMovementsalongDemandandSupplyQQ0MovementsalongDemandandSupplyQQ01ChangeinQuantityChangeinQuantityShiftsinDemandandSupplyAnincreaseShiftsinDemandandSupplyAnincreaseinAdecreaseinOriginalAinAnincreaseinOriginalAggregatingDemandandSupplyAggregatingdemandandsupplyAddtheAggregatingDemandandSupplyAggregatingdemandandsupplyAddthefirmsthatcomprisemarketsupplytogethertogetthemarketsupplyAddthemanyindividualdemandcurvestogetthemarketdemandIf10,000consumershavethedemandfunctionforgasoline:QDgas=9-3Pgas+0.021+0.11PBT-0.008PautoIfthepriceofbustravelis$20,incomeis$50,000,andtheaveragepriceisDeterminetheslopeofthemarketdemandMarketdemandis:QDgas=90,000-30,000Pgas+2001+1,100PBTQD=90,000-30,000Pgas+200*50+1,100*20-QD=119,600-Invertingthisfunction,Pgas=3.987-0.00003333Theslopeofthedemandcurveis-0.00003333,orifwemeasurequantityofgasinthousandsofgallons,weget-0.0333.MarketEquilibriumpriceandtheequilibriumMarketEquilibriumpriceandtheequilibriumWhenhaveamarketsupplyandmarketdemandcurveforagood,wecansolveforthepriceatwhichthequantitysuppliedequalsthequantitydemanded.Wedefinethisastheequilibriumpriceandtheequilibriumquantity.PSEDQOE:marketequilibrium.Attheprice,thequantityofsupply=thequantityofMovementtowardIfthepriceisaboveitsequilibriumlevel,thequantitywillinglysuppliedexceedsthequantityconsumersarewillingtopurchase,andwehaveexcesssupply.Supplierswillingtosellatlowerpricewillofferthosepricestoconsumers,drivingthemarketpricedowntowardstheequilibriumlevel.Ifthemarketpriceisbelowitsequilibriumlevel,thequantitydemandedatthatpriceexceedsthequantitysupplied,andMovementtowardIfthepriceisaboveitsequilibriumlevel,thequantitywillinglysuppliedexceedsthequantityconsumersarewillingtopurchase,andwehaveexcesssupply.Supplierswillingtosellatlowerpricewillofferthosepricestoconsumers,drivingthemarketpricedowntowardstheequilibriumlevel.Ifthemarketpriceisbelowitsequilibriumlevel,thequantitydemandedatthatpriceexceedsthequantitysupplied,andwehaveexcessdemand.Consumerswillofferhigherpricestocompetefortheavailablesupply,drivingthemarketpriceuptowardsequilibriumExcessdrivespriceproductioninresponsetoSuppliersreduceproductioninresponsetodecliningpricerisingatatatatStableandUnstableAnequilibriumistermedstablewhenthereareforcesthatmoveStableandUnstableAnequilibriumistermedstablewhenthereareforcesthatmovepricequantitybacktowardsequilibriumvalueswhentheydeviatefromthoseaslongassupplycurvecutsthroughthedemandcurvefromabove,equilibriumwillbeIfthesupplycurveislesssteeplyslopedthanthedemandcurve,andabove(below)equilibriumwilltendtogetfurtherfromequilibrium.WerefersuchanequilibriumasStableandUnstableSDSExcessExcessStableExcessExcessDDSSExcessUnstableUnstableStableDStableandUnstableSDSExcessExcessStableExcessExcessDDSSExcessUnstableUnstableStableDTypesofAuctionisanalternativetoTypesofAuctionisanalternativetomarketsfordetermininganequilibriumTypesofAuction:CommonvalueauctionVSPrivatevaluecommonvaluevalueoftheitemtobeauctionedwillbethesametoanybiddermustestimatewhatthatvaluebiddermostoverestimatesthewinner'sprivatevalueauction:Thevaluethateachbidderplacesonanitemisthevalueithastohim,andweassumethatnobidderwillbidmorethanthat.(e.g.,art,collectibles)Typesofcommontypeofascendingpriceauction(EnglishbidderscanbidanamountgreaterthantheTypesofcommontypeofascendingpriceauction(Englishbidderscanbidanamountgreaterthantheprevioushighbidderthatfirstoffersthehighestbidoftheauctionwinstheitemandpaystheamountbid.Winner’scurse:bidmorethantheultimatevalueoftheassetforcommonsealedbidbidsareelicitedfrompotentialthereisnoabilitytoobservebidsbyotherbuyersuntiltheauctionhasreservationprice:referstothehighestpricethatabidderiswillingtothefirstsealedbidBidsareopenedsimultaneouslyandtheitemissoldtothehighestbidderfortheactualbidprice.Typically,someoverlyoptimisticbidderswillvaluetheassethigherthanitsultimaterealizablevalue,andtheymightsubmitbidsabovethattruevalue.Becausethehighestbidderwinstheauctionandmustpayhisfullbidprice,hemayfindthathehasfallenpreytothewinner’scurseofhavingbidmorethantheultimatevalueoftheasset.Inrecognitionofthepossibilityofbeingoverlyoptimistic,biddersmightbidveryconservativelybelowtheirexpectationofthetruevalue.thebiddersubmittingthehighestbidwinstheitembutpaystheamountbidbythesecondhighestbidderInducesbuyerstorevealtheirtruevaluationoftheTypesofdescendingpriceauction(DutchbeginsTypesofdescendingpriceauction(Dutchbeginswithapricegreaterthanwhatanybidderwillpay,andthisofferisreduceduntilabidderagreestopayModifiedDutchauction:establishingasinglepriceforallpurchasers.ItcommonlyusedinsecuritiesSinglepriceauctionisusedinsellingU.S.Treasurysecurities.Butbiddersmayalsosubmitanoncompetitivebid.SuchabidindicatesthatthosebidderswillaccepttheamountofTreasuriesindicatedatthepricedeterminedbytheauction,ratherthanspecifyingamaximumpriceintheirExample:SinglePriceAuctioningTreasuryBillswithaSinglePriceTheU.S.Treasuryofferstosell$115billionof52-weekT-billsandrequestscompetitiveandnon-competitivebids.Non-competitivebidstotal$10billion,andcompetitivebiddersindescendingorderofofferpriceExample:SinglePriceAuctioningTreasuryBillswithaSinglePriceTheU.S.Treasuryofferstosell$115billionof52-weekT-billsandrequestscompetitiveandnon-competitivebids.Non-competitivebidstotal$10billion,andcompetitivebiddersindescendingorderofofferpriceareasgiveninthetableDeterminethewinningpriceifasinglepriceDutchauctionisusedtoselltheseT-Forthosebiddersatthewinningprice,whatpercentageoftheirorderwouldbeBid(%)per($billions)($billions)Bids($Bids($billions)5Example:SinglePriceSolutionto1:Enterthenon-competitivequantityof$10billionintothetable.ThenfindcumulativecompetitivebidsandthetotalExample:SinglePriceSolutionto1:Enterthenon-competitivequantityof$10billionintothetable.ThenfindcumulativecompetitivebidsandthetotalcumulativebidsintherespectiveNotethatatabidpriceof99.8400therewouldbeexcessdemandof$12billion(i.e.,thedifferencebetween$127billionbidand$115billionoffered),butatthehigherpriceof99.8405therewouldbeexcesssupply.Sothewinningbidwouldbeatapriceof99.8400.Solutionto2:Atapriceof99.8400,therewouldbe$15billionmoredemandedthanat($127billionminus$112billion),andat99.8405therewouldbeexcesssupplyequalto$3billion.Sothebiddersatthewinningbidwouldhaveonly3/15,or20percent,oftheirordersfilled.BidPrice($billions)($billions)($billions)5MarginalBenefitandMarginalMarginalBenefitandMarginalMarginalbenefitisthebenefitderivedfromconsumingadditionalunitofagoodorMB(MU):toMR:toMB(MU)curve==DemandMarginalcost,thecostofproducingonemoreunitofagoodorMCcurve==SupplyMarginalBenefitandMarginalEfficiencyandMarginalBenefitandMarginalEfficiencyandWhenMB>MCorMB<MC,thequantityofgoodisWhenMB=MC,thequantityofgoodisefficiencyandthesumofconsumersurplusandproducerssurplusismaximized.PQConsumerSurplus,ProducerSurplus,andTotalThedifferencebetweenthetotalvaluetoconsumersoftheunitsConsumerSurplus,ProducerSurplus,andTotalThedifferencebetweenthetotalvaluetoconsumersoftheunitsofagoodthattheybuyandthetotalamounttheymustpayforthoseunitsiscalledconsumerProducersurplusistheexcessofthemarketpriceabovetheopportunitycostofTotalsurplus=consumersurplus+producerPAEBOQCalculatingConsumerandCalculatingConsumerandProducerCalculatingConsumerandProducerSurpluswhendemandandsupplyarelinear(assume:demandcurveandsupplycurvehavethesamesteepness.)DemandfunctionQ=48-P=8theconsumersurplus=1/2(8×24)=96SupplyfunctionQ=-P=8Theproducersurplus=1/2(4×24)=RelationshipbetweenConsumerSurplusRelationshipbetweenConsumerSurplusandProducerWhentheefficientquantity(MB=MC)isproduced,thesumofconsumersurplusandproducessurplusismaximized.Buyersandsellersactingintheirself-interestenduppromotingthesocialinterest.Ifthesupplycurveissteeperthanthedemandcurve,moreofthesurplusisbeingcapturedbyproducers.Ifthedemandcurveissteeper,consumerscapturemoreofthesurplus.Totalsurplusisameasureofsociety’sgainfromthevoluntaryofgoodsandDeadweightDeadweightThereductioninconsumerandproducersurplusdueunderproductionoroverproductionDeadweightDeadweightThereductioninconsumerandproducersurplusdueunderproductionoroverproductioniscalledadeadweightSupplySupplyDeadweightlossfromDeadweightlossDemandDemandObstaclestoObstaclestoObstaclestoObstaclestoPricecontrols:priceceiling(underproduction,e.g.rentcontrol)andpricefloor(overproduction,e.g.minimumwage)Tax:buyerspayahigherprice,sellersreceivealowerpriceSubsidies:overproductionQuotas:underproductionMonopoly:underproductionExternalcosts:overproductionExternalbenefits:underproductionPublicgoods:underproductionCommonresources:PriceApriceceilingisanupperlimitonthepricewhichasellercancharge.Iftheceilingisabovetheequilibriumprice,itwillhavenoeffect.AfterimpositionofapricefloorPriceApriceceilingisanupperlimitonthepricewhichasellercancharge.Iftheceilingisabovetheequilibriumprice,itwillhavenoeffect.AfterimpositionofapriceflooratConsumersurplus:Producersurplus:Deadweightloss:Inthelongrun,pricefloorsleadtoPSabcdConsumersmayhavetowaitinlonglinestomakepurchases.Theypayaprice(anopportunitycost)intermsofthetimetheyspendinline.Suppliersmayengageindiscrimination,suchassellingtofriendsandrelativesfirst.Suppliers“officially”sellattheceilingpricebuttakebribestodoso.Suppliersmayalsoreducethequalityofthegoodsproducedtoalevelcommensuratewiththeceilingprice.eDNote:Apriceceilingtransferssurplusequaltoareacfromsellerstobuyers,butitdestroyssurplusequaltoareab+d,calledadeadweightloss.PricePricefloorisaminimumpricethatabuyercanofferagood,service,orresource.IfthepricefloorisPricePricefloorisaminimumpricethatabuyercanofferagood,service,orresource.Ifthepricefloorisbelowtheequilibriumprice,itwillhavenoeffectonequilibriumpriceandquantity.AfterimpositionofapriceflooratConsumersurplus:Producersurplus:Deadweightloss:Inthelongrun,pricefloorsleadtoSupplierswilldivertresourcestotheproductionofthegoodwiththeanticipationofsellingthegoodatthefloorprice,butthenwillnotbeabletosellalltheyproduce.Consumerswillbuylessofaproductifthefloorisabovetheequilibriumpriceandsubstituteother,lessexpensiveconsumptiongoodsforthegoodsubjecttothepricePxSacbedDNote:Apricefloortransferssurplusequaltoareabfrombuyerstosellers,butitdestroyssurplusequaltoareac+d,calledadeadweightlossMinimumTheminimumMinimumTheminimumwageintheUnitedStatesisanexampleofapriceminimumwagerate(livingwage)thatpreventsemployersfromhiringworkersatawagelessthanthelegalminimum. minimumwage>equilibriumwagewillbeanexcesssupplyofTheresultisincreasedunemploymentbecauseevenwhenthereareworkerswillingtoworkatawagelowerthantheminimum,firmscannotlegallyhirethem.firmsmaydecreasethequalityorquantityofthebenefitstheypreviouslyofferedtoworkers,suchaspleasant,safeworkingconditionsandon-the-jobtrainingImpactofTheincidenceofataxisallocationofthistaxbetweenbuyersTaxonTaxonDSImpactofTheincidenceofataxisallocationofthistaxbetweenbuyersTaxonTaxonDSDSSPPETaxrevenuefromTaxrevenuefromppETaxrevenuefromTaxrevenuefromppSSImpactofActualandImpactofActualandStatutoryIncidenceofaStatutoryincidencereferstowhoislegallyresponsibleforpayingtheTheactualincidenceofataxreferstowhoactuallybearsthecostofthetaxthroughanincreaseinthepricepaid(buyers)ordecreaseinthepricereceived(sellers)TaxonStatutoryincidence:Actualincidence:sellersandbuyersTaxonbuyers:Statutoryincidence:Actualincidence:buyersandSubsidiesarepaymentsmadebygovernmentstoproducers,oftenS(dollarsperSSubsidiesarepaymentsmadebygovernmentstoproducers,oftenS(dollarsperS-DeadweightlossD（millionsoftonsperAfterimpositionofsubsidies,supplywillincrease,whichleadtoincreaseinquantity,Buyerswillpayalowerprice.SellerswillreceiveahigherProductionquotasareusedtoregulatemarketsbyimposinganupperlimitonthequantityofagoodthatmaybeproducedoveraspecifiedtimeperiod.Quotasareoftenusedbygovernmentstoregulateagriculturalmarkets.AfterimpositionofProductionquotasareusedtoregulatemarketsbyimposinganupperlimitonthequantityofagoodthatmaybeproducedoveraspecifiedtimeperiod.Quotasareoftenusedbygovernmentstoregulateagriculturalmarkets.Afterimpositionofquotas,thequantitywilldecrease,underproduction.BuyerswillpayahigherAtthequotaamount,marginalbenefit(price)exceedsmarginalcost.Thisexplainswhyproducersoftenseektheimpositionofquotas.(dollarsperinproducerMBDeadweightlossLossofproducerMCQuantityproducerdecreasestoQuotaamount=60PriceElasticityCrossPriceElasticityCrossElasticityofOtherelasticityofIncomeElasticityofPriceElasticityofPriceelasticityisameasureoftheresponsivenessofthequantitydemandedtoachangeinprice.PriceElasticityofPriceelasticityisameasureoftheresponsivenessofthequantitydemandedtoachangeinprice.Theformulausedtocalculatethepriceelasticityofdemandispercentchangeinquantitydemand=DQ/priceelasticityofdemandpercentchangeinDP/percentchange=changeinvalueendingvalue-beginning(endingvalue+beginningaverage)2Example:CalculatingPointQxd,=8,400-400Px+60I-Example:CalculatingPointQxd,=8,400-400Px+60I-choose$3for$50(thousands)for$20(thousands)fordQD=-400· =-0.12dEown-priceelasticityof=x·dQxxPriceElasticityofIfasmallpercentagepricechangeresultsinalargepercentagechangeinquantitydemanded,thedemandforthatgoodissaidtobePriceElasticityofIfasmallpercentagepricechangeresultsinalargepercentagechangeinquantitydemanded,thedemandforthatgoodissaidtobehighlyelastic.Theabsolutevalueofpriceelasticityisgreaterthanone.Ifalargepercentagepricechangeresultsinasmallpercentagechangeinquantitydemanded,demandisrelativelyinelastic.Theabsolutevalueofpriceelasticityislessthanone.Aperfectlyelasticdemandcurveishorizontal,anditselasticityisinfinite.Ifthepriceincreases,quantitydemandedgoestozero.Aperfectlyinelasticdemandcurveisvertical,andelasticityiszero.IfthepricetherewillbenochangeinthequantityPerfectlyPerfectlyInelastic/PriceElasticityofDemandisDifferentAlongalinearDemandCurveTherelationbetweenpricePriceElasticityofDemandisDifferentAlongalinearDemandCurveTherelationbetweenpriceelasticityofdemandandtotalrevenue.Totalrevenueismaximizedatthepriceandquantitywheredemandisunitelastic(priceelasticity=－1)andsodecreaseswithbothpriceincreasesorpricedecreasesfromthatWhenpriceisintheelastic(inelastic)regionofthedemandcurve,apriceincreasewilldecrease(increase)totalWhenEp>1,ifpriceincreases,thequantitywilldecrease,andthechangeinquantityisgreaterthanthatinprice.Asaresult,thetotalrevenuewilldecrease.TR=P*Q,△R/R=△P/P+△P,△Q,but∣△Q∣>∣△PSo△R/R=△P/P+△Q/Q<TR87654highelasticity=-unitaryelasticity=- unitaryelasticity=-3212050 ElasticityofSupplyandDemandandTax(a)InelasticSupply(b)InelasticDemandtaxtaxfromSfromElasticityofSupplyandDemandandTax(a)InelasticSupply(b)InelasticDemandtaxtaxfromSfromPEPSSPEDDDDQTaxQIfthesupplycurveislesselastic,sellerswillbearahighertaxburden.(FigureIfthedemandcurveislesselastic,buyerswillbearahighertaxburden.fromfromFactorsthatInfluencetheElasticityofAvailabilityofsubstitutes.IfgoodFactorsthatInfluencetheElasticityofAvailabilityofsubstitutes.Ifgoodsubstitutesareavailable,aincreaseinoneproductwillinduceconsumerstoswitchtoaRelativeamountofincomespentonthegood.Whentheportionconsumerbudgetsspentonaparticulargoodisrelativelysmall,demandforthatgoodwilltendtoberelativelyinelastic.Timesincethepricechange.ThepriceelasticityofdemandforproductsisgreaterinthelongrunthanintheshortCrossCrosselasticityofdemandmeasurestheCrossCrosselasticityofdemandmeasuresthechangeinthedemandforagoodinresponsetothechangeinpriceofasubstituteorcomplementarygood.Theformulaforcalculatingcrosselasticityofdemandpercentchangeinquantity=DQA/crosselasticityofdemandpercentchangeinpriceofsubstituteorDPB/Crosselasticityofdemandispositiveforsubstitutegoods.(Example:appleandpear)Crosselasticityofdemandisnegativeforcomplement(Example:carandIncomeElasticityofIncomeelasticityofdemandmeasuresthesensitivityofIncomeElasticityofIncomeelasticityofdemandmeasuresthesensitivityofthequantityofagoodorservicedemandedtoachangeinaconsumer’sincome.Theformulaforincomeelasticityofdemandpercentchangeinquantitydemanded=DQ/incomeelasticityofdemandpercentchangeinDI/TheapplicationofIncomeNormalGoods:positiveincomeelasticity,demandriseswith(>Luxuries:highpositiveelasticity,demandrisesstronglywithincome.Necessitygoods:normalbutlowelasticity(between0～InferiorGoods:negativeincomeelasticity,demandfallswithincomeExample:CalculatingPointQxd,=8,400-400Px+60I-choose$3for$50(thousands)for$20(thousands)fordQD=-400· =-Example:CalculatingPointQxd,=8,400-400Px+60I-choose$3for$50(thousands)for$20(thousands)fordQD=-400· =-0.12fiown-priceelasticityofdemanddpE=x·dQIxxxddIEx=60=0.3fiincomeelasticityof=·dQxdQPydD dpEx=-10· =-0.02ficross-priceelasticity QyyxFrameworkofFrameworkofSS4MicroeconomicR13demandandsupply:R14demandandsupply:consumerdemand R15demandandsupply:theR16thefirmandthemarketSS5MacroeconomicR17aggregateoutput,price,andeconomicR18understandbusinessR19monetaryandfiscalSS6EconomicsinaGlobalR20internationaltradeandcapitalR21currencyexchangeR14ConsumerChoiceR14ConsumerChoiceTheoryandUtilityUtilityBudgetSubstitutionandincomeNormalgoodsandinferiorConsumerChoiceTheoryandUtilityFramework:ConsumerChoiceTheoryandUtilityFramework:consumerchoiceUtilityBudgetLiketoCanConsumerShouldDemandConsumerChoiceConsumerchoicetheory:relatesConsumerChoiceConsumerchoicetheory:relatesconsumers’wantsandpreferencestothegoodsandservicestheyactuallybuy.ItmodelswhattheconsumerwouldliketoItexamineswhattheconsumercanconsumewithlimitedBysuperimposingwhattheconsumerwouldliketodoontowhattheconsumercando,wearriveatamodelofwhattheconsumerwoulddoundervariouscircumstances.Assumption:theconsumerknowshisorherowntastesandpreferencesandtendstotakerationalbundle.AxiomsofthetheoryofconsumerCompletepreferences:A>BorA<BorA=Transitivepreferences:A>BandB>Non-satiation:“moreisbetter”,A+1>A>UtilityUtilitytheoryexplainsconsumerbehaviorbasedonpreferencesforvariousalternativeUtilityUtilitytheoryexplainsconsumerbehaviorbasedonpreferencesforvariousalternativecombinationsofgoods,intermsoftherelativelevelofsatisfactiontheyprovide.Utilityfunction:utility=U(QA,QB,…,QN),wherethevariablesarequantitiesconsumedofgoodsAthroughN.Utilityisanordinalmeasure,ratherthanacardinalOrdinalrankingsareweakermeasuresthancardinalrankingsbecausetheydonotallowthecalculationandrankingofthedifferencesbetweenbundles.Indifferencecurverepresentsallthecombinationsoftwogoodssuchthattheconsumerisentirelyindifferentamongthem.CharacteristicsofindifferenceIndifferencecurvesfortwogoodsslopeIndifferencecurvescannotIndifferencecurvesareconvexIndifferencecurverepresentsallthecombinationsoftwogoodssuchthattheconsumerisentirelyindifferentamongthem.CharacteristicsofindifferenceIndifferencecurvesfortwogoodsslopeIndifferencecurvescannotIndifferencecurvesareconvextowardstheGoodGoodA5BC43CAB21DGoodGood12345678IndifferencecurvesslopeIndifferencecurvescannotMarginalRateofSubstitutionMarginalrateofsubstitutiontheMarginalRateofSubstitutionMarginalrateofsubstitutiontherateatwhichtheconsumeriswillingtogiveuponeobtainanothergoods,holdingutilityconstant.MRSXY=-△Y/goodsExample：MRSXY＝3，increase1unitofGoodX,havetoup3unitsofGoodY,holdingutilitythelawofdiminishingmarginalrateofsubstitution:asonemovesdowna(standardlyconvex)indifferencecurve,themarginalrateofsubstitutiondecreases(asmeasuredbytheabsolutevalueoftheslopeoftheindifferencecurve,whichBudgetBudgetconstraintcanbeconstructedbasedBudgetBudgetconstraintcanbeconstructedbasedontheconsumer’sincomeandthepricesoftheavailablegoods.ThebudgetlineshowsallcombinationsofGoodXandGoodYthatwilljustexhausttheconsumer’sincome.SlopeofBudgetconstraintisSlopeofBudgetconstraintisthepriceBudgetUnitsofGoodIncome=Px=$6PY=6UnitsofGoodBudgetChangingThepriceofGoodYkeepsconstant:anincreaseinthepriceofGoodXBudgetChangingThepriceofGoodYkeepsconstant:anincreaseinthepriceofGoodXpivotsthebudgetconstraintinward,becomingsteeper.ThepriceofGoodXkeepsconstant:anincreaseinthepriceofGoodYpivotsthebudgetconstraintdownward,becominglesssteep.Changingincome:anincreaseinincomeshiftsthebudgetconstraintparalleltotheoriginalPanelPanelPanelYYYXXXConsumer'sConsumerUtilityismaximized,subjecttotheConsumer'sConsumerUtilityismaximized,subjecttothebudgetTangencybetweenbudgetconstraint&thehighestindifferenceAttangentpointMRSXY（邊際替代率，消費者意愿）Price=PX=-PYYConsumer'sGood=MUX=Consumer'sGood=MUX==-PYYMostpreferredaffordable5Good6SubstitutionandIncomeSubstitutionSubstitutionandIncomeSubstitutionWhenthepriceofGoodXdecreases,therelativepriceofGoodXagainstothergoodswilldecrease.Consumerequilibriummovesalongtheindifferencecurve,whichleadstoanincreaseinthedemandofGoodX.IncomeWhenthepriceofGoodXdecreases,consumer’srealpurchasingpowerwillchange.Realincomeincreases,andbudgetconstraintmoves,whichleadtoachangeinthedemandofGoodX.Incomeeffect&Substitutioneffect共同作用決定需求量變化WhendecreaseinthepriceofGoodX:Thesubstitutioneffectispositive,andtheincomeeffectisalsopositive—consumptionofGoodXwillincrease.Thesubstitutioneffectispositive,andtheincomeeffectisnegativebutsmallerthanthesubstitutioneffect—consumptionofGoodXwillincrease.Thesubstitutioneffectispositive,andtheincomeeffectisnegativeandlargerthanthesubstitutioneffect—consumptionofGoodXwilldecreaseNormalGoodsandInferiorNormalgoodisoneforwhichtheincomeeffectispositive.InferiorgoodisoneforNormalGoodsandInferiorNormalgoodisoneforwhichtheincomeeffectispositive.Inferiorgoodisoneforwhichtheincomeeffectisnegative.Giffengoods(吉芬商品):Incomeeffect（inferiorgoods）>SubstitutiondemandcurvehaspositiveVeblengoods(韋伯倫商品,ConspicuousConsumercannottrulyvalueagooduntilthepriceisPriceisusedbytheconsumertosignalthestatusintheHighpricehighvaluehighdemandquantityhaveapositivelyslopeddemandcurve(eg:Guccibag)Butwhenpriceincreases,theslopemaybetwoimportantdistinctionsbetweenGiffengoodsandVeblenFirst,Giffengoodsareinferiorgoods(negativeincomeeffect),whileVeblengoodscertainlyarenot.Second,theexistenceofGiffengoodsistheoreticallysupportedbyourrulesconsumerchoice,whiletheexistenceofVeblengoodsisFrameworkofFrameworkofSS4MicroeconomicR13demandandsupply:R14demandandsupply:consumerdemandR15demandandsupply:the R16thefirmandthemarketSS5MacroeconomicR17aggregateoutput,price,andeconomicR18understandbusinessR19monetaryandfiscalSS6EconomicsinaGlobalR20internationaltradeandcapitalR21currencyexchangeR15DemandandR15DemandandSupply:theAccountingprofit,economicprofit,normalprofitandeconomicTotal,average,andmarginalTotal,average,marginal,fixed,andvariableBreakevenandshutdownpointsofEconomiesofscaleanddiseconomiesofProfitTotal,marginal,andaverageproductofAccountingProfit,EconomicProfitandNormalAccountingprofitmaybereferredtoasnetincome,netprofit,netearnings,orthe“bottomline”(ofthefirm’sincomestatement).Accountingprofit=totalrevenue–totalaccounting(explicit)costEconomicprofitisAccountingProfit,EconomicProfitandNormalAccountingprofitmaybereferredtoasnetincome,netprofit,netearnings,orthe“bottomline”(ofthefirm’sincomestatement).Accountingprofit=totalrevenue–totalaccounting(explicit)costEconomicprofitisalsoreferredtoasabnormalprofit.Itisequaltoaccountingprofitlessimplicitcosts.Implicitcostsaretheopportunitycostsofresourcessuppliedtothefirmbyitsowners.Forprivatefirms,thesecostsmayinclude(1)theopportunitycostofowner-suppliedcapitaland(2)theopportunitycostofthetimeand(3)entrepreneurialabilityofthefirm’sowners.Forpubliclytradedfirms,implicitcostsaretypicallyonlytheopportunitycostofequityowners’investmentinthefirm.Economicprofit=accountingprofit–implicitopportunityOreconomicprofit=totalrevenue–totaleconomicNormalprofitistheaccountingprofitthatmakeseconomicpro