ECO204Y5 Lecture Notes - Lecture 27: Glyceraldehyde 3-Phosphate, Canadian Dairy Commission, Gout
Document Summary
Price supports: government achieves an artificially higher price by acting as a consumer. Aimed at helping producers (cid:862)supports(cid:863) higher pri(cid:272)e (cid:271)y (cid:271)uyi(cid:374)g up surplus produ(cid:272)tio(cid:374) eli(cid:373)i(cid:374)ates the loss of (cid:862)area f(cid:863) fro(cid:373) min. wage example. Example: canadian dairy commission (cdc: http://www. cdc-ccl. gc. ca/cdc/index-eng. php?id=3785, www. cdc-ccl. gc. ca/cdc/index-eng. php?link=115. Consumers: original cs: a + b + c, new cs: a. Government: origi(cid:374)al (cid:862)surplus(cid:863) : none, ne(cid:449) (cid:862)surplus(cid:863) : -c-e-f-g. } (-c-e-f-g) 0 = -c-e-f-g: negati(cid:448)e (cid:271)e(cid:272)ause it"s a (cid:272)ost to the go(cid:448)er(cid:374)(cid:373)e(cid:374)t. } [(b+d) + (c+e+f)] (d+e) = b+c+f (cid:862)area g(cid:863) is the (cid:373)argi(cid:374)al (cid:272)ost of producing those many units of surplus. Net effect: c + p + go(cid:448)er(cid:374)(cid:373)e(cid:374)t. = (-b-c) + (b+c+f) + (-c-e-f-g) = -c-e-g: dwl = c+e+g. Production quotas: government encourages a reduced level of production (qquota < qpc) Some examples: canadian dairy commission: indicating how much milk and butter should be supplied nationally, nyc taxi cabs: purchase of medallions, acreage limitation program (analysis, agriculture: wheat.
