Reading: Price Ceilings: Misallocation of Resources
Misallocation
of Resources
Maximum
Consumer Surplus with Qs
Units
The
Loss from Random Allocation
•Because
goods are not always allocated to the highest valued uses…
•Consumer
surpluses will be less
•How
much less?
•Let’s
do some reasonable calculations
•First,
we will consider how one gallon of gasoline might be allocated under the best
and worst conditions for random allocation
The
Loss from Random Allocation of One Gallon: Best Case Scenario
The
Loss from Random Allocation of One Gallon: Worst Case Scenario
Modifié le: mardi 14 août 2018, 10:15