1. เศรษฐศาสตร์สาธารณะ รพีสุภา หวังเจริญรุ่ง Thai Economy in Global Context 3-

7. Figure 1 A Market with a Price Ceiling Thai Economy in Global Context 3- (a) A Price Ceiling That Is Not Binding Quantity of Ice-Cream Cones 0 Price of Ice-Cream Cone Equilibrium quantity $4 Price ceiling Equilibrium price Demand Supply 3 100

8. Figure 1 A Market with a Price Ceiling Thai Economy in Global Context 3- Copyright©2003 Southwestern/Thomson Learning (b) A Price Ceiling That Is Binding Quantity of Ice-Cream Cones 0 Price of Ice-Cream Cone Demand Supply 2 Price ceiling Shortage 75 Quantity supplied 125 Quantity demanded Equilibrium price $3

11. Figure 2 The Market for Gasoline with a Price Ceiling Thai Economy in Global Context 3- Copyright©2003 Southwestern/Thomson Learning (a) The Price Ceiling on Gasoline Is Not Binding Quantity of Gasoline 0 Price of Gasoline 1. Initially, the price ceiling is not binding . . . Price ceiling Demand Supply, S 1 P 1 Q 1

12. Figure 2 The Market for Gasoline with a Price Ceiling Thai Economy in Global Context 3- Copyright©2003 Southwestern/Thomson Learning (b) The Price Ceiling on Gasoline Is Binding Quantity of Gasoline 0 Price of Gasoline Demand S 1 S 2 Price ceiling Q S 4. . . . resulting in a shortage. 3. . . . the price ceiling becomes binding . . . 2. . . . but when supply falls . . . P 2 Q D P 1 Q 1

14. Figure 4 A Market with a Price Floor Thai Economy in Global Context 3- Copyright©2003 Southwestern/Thomson Learning (a) A Price Floor That Is Not Binding Quantity of Ice-Cream Cones 0 Price of Ice-Cream Cone Equilibrium quantity 2 Price floor Equilibrium price Demand Supply $3 100

15. Figure 4 A Market with a Price Floor Thai Economy in Global Context 3- Copyright©2003 Southwestern/Thomson Learning (b) A Price Floor That Is Binding Quantity of Ice-Cream Cones 0 Price of Ice-Cream Cone Demand Supply $4 Price floor 80 Quantity demanded 120 Quantity supplied Equilibrium price Surplus 3

18. Figure 5 How the Minimum Wage Affects the Labor Market Thai Economy in Global Context 3- Copyright©2003 Southwestern/Thomson Learning Quantity of Labor Wage 0 Labor demand Labor Supply Equilibrium employment Equilibrium wage

19. Figure 5 How the Minimum Wage Affects the Labor Market Thai Economy in Global Context 3- Copyright©2003 Southwestern/Thomson Learning Quantity of Labor Wage 0 Labor Supply Labor surplus (unemployment) Labor demand Minimum wage Quantity demanded Quantity supplied

23. Figure 6 A Tax on Buyers Thai Economy in Global Context 3- Copyright©2003 Southwestern/Thomson Learning Quantity of Ice-Cream Cones 0 Price of Ice-Cream Cone Price without tax Price sellers receive Equilibrium without tax Tax ($0.50) Price buyers pay D 1 D 2 Supply, S 1 A tax on buyers shifts the demand curve downward by the size of the tax ($0.50). $3.30 90 Equilibrium with tax 2.80 3.00 100

24. Figure 7 A Tax on Sellers Thai Economy in Global Context 3- Copyright©2003 Southwestern/Thomson Learning Quantity of Ice-Cream Cones 0 Price of Ice-Cream Cone 2.80 Price without tax Price sellers receive Equilibrium with tax Equilibrium without tax Tax ($0.50) Price buyers pay S 1 S 2 Demand, D 1 A tax on sellers shifts the supply curve upward by the amount of the tax ($0.50). 3.00 100 $3.30 90

25. Figure 8 A Payroll Tax Thai Economy in Global Context 3- Copyright©2003 Southwestern/Thomson Learning Quantity of Labor 0 Wage Labor demand Labor supply Tax wedge Wage workers receive Wage firms pay Wage without tax

28. Figure 9 How the Burden of a Tax Is Divided Thai Economy in Global Context 3- Copyright©2003 Southwestern/Thomson Learning Quantity 0 Price (a) Elastic Supply, Inelastic Demand Demand Supply Tax Price sellers receive Price buyers pay 2. . . . the incidence of the tax falls more heavily on consumers . . . 1. When supply is more elastic than demand . . . Price without tax 3. . . . than on producers.

29. Figure 9 How the Burden of a Tax Is Divided Thai Economy in Global Context 3- Copyright©2003 Southwestern/Thomson Learning Quantity 0 Price (b) Inelastic Supply, Elastic Demand Demand Supply Tax Price sellers receive Price buyers pay 3. . . . than on consumers. 1. When demand is more elastic than supply . . . Price without tax 2. . . . the incidence of the tax falls more heavily on producers . . .

38. Figure 10 The Market for Aluminum Thai Economy in Global Context 3- Copyright © 2004 South-Western Quantity of Aluminum 0 Price of Aluminum Equilibrium Demand (private value) Supply (private cost) Q MARKET

39. Figure 11 Pollution and the Social Optimum Thai Economy in Global Context 3- Copyright © 2004 South-Western Quantity of Aluminum 0 Price of Aluminum Equilibrium Demand (private value) Supply (private cost) Social cost Q OPTIMUM Optimum Cost of pollution Q MARKET

44. Figure 12 Education and the Social Optimum Thai Economy in Global Context 3- Copyright © 2004 South-Western Quantity of Education 0 Price of Education Demand (private value) Social value Supply (private cost) Q MARKET Q OPTIMUM

53. Figure 13 The Equivalence of Pigovian Taxes and Pollution Permits Thai Economy in Global Context 3- Copyright © 2004 South-Western Quantity of Pollution 0 Price of Pollution (a) Pigovian Tax Demand for pollution rights P Pigovian tax 2. . . . which, together with the demand curve, determines the quantity of pollution. 1. A Pigovian tax sets the price of pollution . . . Q

54. Figure 13 The Equivalence of Pigovian Taxes and Pollution Permits Thai Economy in Global Context 3- Copyright © 2004 South-Western Quantity of Pollution 0 (b) Pollution Permits Price of Pollution Demand for pollution rights Q Supply of pollution permits 2. . . . which, together with the demand curve, determines the price of pollution. 1. Pollution permits set the quantity of pollution . . . P

57. Figure 14 The Effects of a Tax Thai Economy in Global Context 3- Copyright © 2004 South-Western Quantity 0 Price Size of tax Price buyers pay Price sellers receive Demand Supply Price without tax Quantity without tax Quantity with tax

60. Figure 15 Tax Revenue Thai Economy in Global Context 3- Copyright © 2004 South-Western Quantity 0 Price Tax revenue ( T × Q) Size of tax ( T ) Quantity sold ( Q ) Demand Supply Quantity without tax Quantity with tax Price buyers pay Price sellers receive

61. Figure 16 How a Tax Effects Welfare Thai Economy in Global Context 3- Copyright © 2004 South-Western Quantity 0 Price A F B D C E Demand Supply = P B Q 2 = P S Price buyers pay Price sellers receive = P 1 Q 1 Price without tax

63. How a Tax Affects Welfare Thai Economy in Global Context 3-

66. Figure 17 The Deadweight Loss Thai Economy in Global Context 3- Copyright © 2004 South-Western Quantity 0 Price Cost to sellers Value to buyers Size of tax Demand Supply Lost gains from trade Reduction in quantity due to the tax Price without tax Q 1 P B Q 2 P S

68. Figure 18 Tax Distortions and Elasticities Thai Economy in Global Context 3- Copyright © 2004 South-Western (a) Inelastic Supply Price 0 Quantity Demand Supply Size of tax When supply is relatively inelastic, the deadweight loss of a tax is small.

69. Figure 18 Tax Distortions and Elasticities Thai Economy in Global Context 3- Copyright © 2004 South-Western (b) Elastic Supply Price 0 Quantity Demand Supply Size of tax When supply is relatively elastic, the deadweight loss of a tax is large.

70. Figure 19 Tax Distortions and Elasticities Thai Economy in Global Context 3- Copyright © 2004 South-Western (c) Inelastic Demand Price 0 Quantity Demand Supply Size of tax When demand is relatively inelastic, the deadweight loss of a tax is small.

71. Figure 19 Tax Distortions and Elasticities Thai Economy in Global Context 3- Copyright © 2004 South-Western (d) Elastic Demand Price 0 Quantity Size of tax Demand Supply When demand is relatively elastic, the deadweight loss of a tax is large.

75. Figure 20 Deadweight Loss and Tax Revenue from Three Taxes of Different Sizes Thai Economy in Global Context 3- Copyright © 2004 South-Western Quantity 0 Price (a) Small Tax Tax revenue Demand Supply Q 1 Deadweight loss P B Q 2 P S

76. Figure 20 Deadweight Loss and Tax Revenue from Three Taxes of Different Sizes Thai Economy in Global Context 3- Copyright © 2004 South-Western Quantity 0 Price (b) Medium Tax Tax revenue P B Q 2 P S Supply Demand Q 1 Deadweight loss

77. Figure 20 Deadweight Loss and Tax Revenue from Three Taxes of Different Sizes Thai Economy in Global Context 3- Copyright © 2004 South-Western Quantity 0 Price (c) Large Tax Tax revenue Demand Supply Q 1 P B Q 2 P S Deadweight loss

79. Figure 21 How Deadweight Loss and Tax Revenue Vary with the Size of a Tax Thai Economy in Global Context 3- Copyright © 2004 South-Western (a) Deadweight Loss Deadweight Loss 0 Tax Size

80. Figure 21 How Deadweight Loss and Tax Revenue Vary with the Size of a Tax Thai Economy in Global Context 3- Copyright © 2004 South-Western (b) Revenue (the Laffer curve) Tax Revenue 0 Tax Size