CHAPTER

6
Supply, Demand, and
Government Policies
Economics
PRINCIPLES OF

N. Gregory Mankiw

© 2009 South-Western, a part of Cengage Learning, all rights reserved

 Government Policies That Alter the
Private Market Outcome
 Price controls
 Price ceiling: harga maksimum dari barang
atau jasa Contoh: kontrol sewa
 Price floor: harga minimum dari barang atau
jasa, Contoh: upah minimum
 Taxes:Pemerintah dapat membuat pembeli atau
penjual membayar jumlah tertentu pada setiap
unit yang dibeli / dijual.
Kami akan menggunakan model penawaran /
permintaan untuk melihat bagaimana masing-
masing kebijakan mempengaruhi hasil pasar?
(Pembeli membayar harga, penjual menerima
harga, dan kuantitas barang).
SUPPLY, DEMAND, AND GOVERNMENT POLICIES 1
 EXAMPLE 1: The Market for Apartments

Rental P S
price of
apts

$800
Eq’m w/o
price
controls
D
Q
300
Quantity of
apartments
SUPPLY, DEMAND, AND GOVERNMENT POLICIES 2
How Price Ceilings Affect Market Outcomes
A price ceiling P
above the S
Price
eq’m price is $1000
ceiling
not binding –
has no effect $800
on the market
outcome.

D
Q
300

SUPPLY, DEMAND, AND GOVERNMENT POLICIES 3

How Price Ceilings Affect Market Outcomes
The eq’m price P S
($800) is above
the ceiling and
therefore illegal.
$800
The ceiling
is a binding Price
$500
constraint ceiling
on the price, shortage
D
causes a Q
250 400
shortage.

SUPPLY, DEMAND, AND GOVERNMENT POLICIES 4

How Price Ceilings Affect Market Outcomes

In the long run, P S

supply and
demand
are more $800
price-elastic.
Price
So, the $500
ceiling
shortage shortage
is larger. D
Q
150 450

SUPPLY, DEMAND, AND GOVERNMENT POLICIES 5

 Shortages and Rationing

 Ketika pemerintah menerapkan batas harga

tertinggi di pasar kompetitif, kelangkaan akan
terjadi. Penjual harus menjatah barang yg langka
kepada sejumlah besar pembeli yang potensial

SUPPLY, DEMAND, AND GOVERNMENT POLICIES 6

EXAMPLE 2: The Market for Unskilled Labor

Wage W S
paid to
unskilled
workers
$4
Eq’m w/o
price
controls
D
L
500
Quantity of
unskilled workers
SUPPLY, DEMAND, AND GOVERNMENT POLICIES 7
 How Price Floors Affect Market Outcomes
A price floor W
below the S
eq’m price is
not binding –
has no effect $4
on the market
Price
outcome. $3
floor

D
L
500

SUPPLY, DEMAND, AND GOVERNMENT POLICIES 8

 How Price Floors Affect Market Outcomes
labor
The eq’m wage ($4) W surplus S
is below the floor Price
and therefore $5
floor
illegal.
$4
The floor
is a binding
constraint
on the wage,
D
causes a L
surplus (i.e., 400 550
unemployment).

SUPPLY, DEMAND, AND GOVERNMENT POLICIES 9

 The Minimum Wage
Min wage laws unemp-
do not affect W loyment S
highly skilled Min.
$5
wage
workers.
They do affect $4
teen workers.
Studies:
A 10% increase
in the min wage D
L
raises teen 400 550
unemployment
by 1-3%.
SUPPLY, DEMAND, AND GOVERNMENT POLICIES 10
ACTIVE LEARNING 1
Price controls The market for
P
140 hotel rooms
S
130
Determine
120
effects of:
110
A. $90 price 100
ceiling 90
B. $90 price 80 D
floor 70
C. $120 price 60
floor 50
40
0 Q
50 60 70 80 90 100 110 120 130
11
ACTIVE LEARNING 1
A. $90 price ceiling The market for
P
140 hotel rooms
The price S
falls to $90. 130
120
Buyers 110
demand 100
120 rooms, Price ceiling
90
sellers supply 80 D
90, leaving a shortage = 30
70
shortage. 60
50
40
0 Q
50 60 70 80 90 100 110 120 130
12
ACTIVE LEARNING 1
B. $90 price floor The market for
P
140 hotel rooms
Eq’m price is S
130
above the floor,
120
so floor is not
110
binding.
100
P = $100, 90
Q = 100 rooms. Price floor
80 D
70
60
50
40
0 Q
50 60 70 80 90 100 110 120 130
13
ACTIVE LEARNING 1
C. $120 price floor The market for
The price P
140 hotel rooms
surplus = 60 S
rises to $120. 130
120
Buyers Price floor
110
demand
100
60 rooms,
90
sellers supply
80 D
120, causing a
70
surplus.
60
50
40
0 Q
50 60 70 80 90 100 110 120 130
14
 Evaluating Price Controls
 Recall one of the Ten Principles from Chapter 1:
Markets are usually a good way
to organize economic activity.
 Harga adalah sinyal yang membimbing alokasi
sumber daya masyarakat. Alokasi ini diubah
ketika pembuat kebijakan membatasi
harga.Kontrol harga sering ditujukan untuk
membantu orang miskin, tapi seringkali lebih
menyakitkan daripada bantuan.

SUPPLY, DEMAND, AND GOVERNMENT POLICIES 15

 Taxes
 Pemerintah mengenakan pajak atas banyak
barang & layanan untuk meningkatkan
pendapatan untuk membayar pertahanan
nasional, sekolah negeri, dll.Pemerintah bisa
membuat pembeli atau penjual membayar
pajaknya.Pajak bisa menjadi% dari harga, atau
jumlah tertentu untuk setiap unit yang
terjual.Untuk menyederhanakan, marilah
menganalisa pajak per unit saja.

SUPPLY, DEMAND, AND GOVERNMENT POLICIES 16

 EXAMPLE 3: The Market for Pizza

Eq’m
w/o tax P
S1

$10.00

D1

Q
500

SUPPLY, DEMAND, AND GOVERNMENT POLICIES 17

 A Tax on Buyers
The price
Hence, buyers
a tax pay
on buyers Effects of a $1.50 per
is nowthe
shifts $1.50 higher
D curve than
down unit tax on buyers
the market
by the price
amount ofP.
the tax. P
P would have to fall S1
by $1.50 to make
buyers willing $10.00
Tax
to buy same Q
as before. $8.50
E.g., if P falls D1
from $10.00 to $8.50, D2
buyers still willing to Q
500
purchase 500 pizzas.

SUPPLY, DEMAND, AND GOVERNMENT POLICIES 18

 A Tax on Buyers
New eq’m: Effects of a $1.50 per
unit tax on buyers
Q = 450 P
Sellers S1
receive PB = $11.00
Tax
PS = $9.50 $10.00
Buyers pay PS = $9.50
PB = $11.00
D1
Difference
between them D2
= $1.50 = tax Q
450 500

SUPPLY, DEMAND, AND GOVERNMENT POLICIES 19

The Incidence of a Tax:
how the burden of a tax is shared among
market participants
P
In our
S1
example, PB = $11.00
Tax
buyers pay $10.00
$1.00 more, PS = $9.50
sellers get
$0.50 less. D1
D2
Q
450 500

SUPPLY, DEMAND, AND GOVERNMENT POLICIES 20

 A Tax on Sellers
The tax effectively raises Effects of a $1.50 per
sellers’ costs by unit tax on sellers
P S2
$1.50 per pizza. $11.50
Tax S1
Sellers will supply
500 pizzas
$10.00
only if
P rises to $11.50,
to compensate for
this cost increase. D1

Hence, a tax on sellers shifts the Q

S curve up by the amount of the tax. 500

SUPPLY, DEMAND, AND GOVERNMENT POLICIES 21

 A Tax on Sellers
New eq’m: Effects of a $1.50 per
unit tax on sellers
Q = 450 P S2
Buyers pay S1
PB = $11.00 PB = $11.00
Tax
Sellers $10.00
receive PS = $9.50
PS = $9.50
D1
Difference
between them
= $1.50 = tax Q
450 500

SUPPLY, DEMAND, AND GOVERNMENT POLICIES 22

The Outcome Is the Same in Both Cases!
The effects on P and Q, and the tax incidence are the
same whether the tax is imposed on buyers or sellers!

Yang penting ini P

adalah sebuah S1
PB = $11.00
irisan pajak - Tax
antara pembeli $10.00
membayar PS = $9.50
harga dan
penjual D1
menerima harga
Q
450 500

SUPPLY, DEMAND, AND GOVERNMENT POLICIES 23

ACTIVE LEARNING 2
Effects of a tax The market for
P
140 hotel rooms
Suppose govt S
130
imposes a tax
120
on buyers of
110
$30 per room.
100
Find new 90
Q, PB, PS, 80 D
and incidence 70
of tax. 60
50
40
0 Q
50 60 70 80 90 100 110 120 130
ACTIVE LEARNING 2
Answers The market for
P
140 hotel rooms
S
130
Q = 80
120
PB = $110 PB = 110
PS = $80 100
Tax
90
PS = 80 D
Incidence
70
buyers: $10 60
sellers: $20 50
40
0 Q
50 60 70 80 90 100 110 120 130
 Elasticity and Tax Incidence
CASE 1: Supply is more elastic than demand

P
lebih mudah
penjual daripada
PB pembeli
S
Buyers’ share
meninggalkan
of tax burden
Tax pasar. sehingga
Price if no tax pembeli
menanggung
Sellers’ share PS sebagian besar
of tax burden
beban pajak.
D
Q

SUPPLY, DEMAND, AND GOVERNMENT POLICIES 26

 Elasticity and Tax Incidence
CASE 2: Demand is more elastic than supply
lebih mudah
P
S pembeli
Buyers’ share daripada
of tax burden PB penjual
meninggalkan
Price if no tax
Tax pasar.
Sellers’ share penjual
of tax burden PS menanggung
D sebagian
Q
besar beban
pajak.
SUPPLY, DEMAND, AND GOVERNMENT POLICIES 27
 CASE STUDY: Who Pays the Luxury Tax?
 1990: Congress adopted a luxury tax on yachts,
private airplanes, expensive cars, etc.
 Goal of the tax: raise revenue from those
who could most easily afford to pay –
wealthy consumers.
 But who really pays this tax?

SUPPLY, DEMAND, AND GOVERNMENT POLICIES 28

 CASE STUDY: Who Pays the Luxury Tax?

The market for yachts Demand is

price-elastic.
P
S
In the short run,
Buyers’ share
of tax burden PB supply is inelastic.

Tax Hence,
companies
Sellers’ share
that build
of tax burden PS
D yachts pay
most of
Q the tax.

SUPPLY, DEMAND, AND GOVERNMENT POLICIES 29

 CONCLUSION: Government Policies and
the Allocation of Resources
 Setiap kebijakan yg dibahas dalam bab ini,
berdampak pada alokasi sumber daya
 Contoh 1, pajak pada pizza
 Contoh 2, UMR.
 Maka, bagi pembuat kebijakan, berhati hatilah

SUPPLY, DEMAND, AND GOVERNMENT POLICIES 30

 PR (1) Para pebisnis dan turis memiliki
permintaan sebagai berikut
harga Qd Pebisnis Qd Turis
150 $ 2.100 1.000
200 2.000 800
250 1.900 600
300 1.800 400

A) Seiring dengan naiknya P tiket dari 200 menjadi

250, berapa elastisitas harga permintaan untuk
pebisnis dan turis (gunakan metode titik tengah)!
B) Mengapa pebisnis memiliki elastisitas yang
berbeda dengan turis?

SUPPLY, DEMAND, AND GOVERNMENT POLICIES 31

 PR (2) BAB 4 PENAWARAN
 Pada saat harga emping/kg di Jakarta Rp
20.000,-
 Penawarannya 60.000kg
 Ketika harganya turun Rp 15.000,-, penawaran
turun menjadi 20.000,-
 Tentukan fungsi penawarannya!

THE MARKET FORCES OF SUPPLY AND DEMAND 32

 PR (3)
 Misalkan daftar permintaan anda untuk Compact
Disck (CD) adalah sebagai berikut

Harga Qd Qd
(pendapatan;$10.000) (pendapatan; $12.000)
8$ 40 50
10 32 45
12 24 30
14 16 20
16 8 12

SUPPLY, DEMAND, AND GOVERNMENT POLICIES 33

 Pertanyaan PR (3)
A. Gunakan metode titik tengah untuk menghitung
elastisitas harga permintaan ketika harga CD
naik dari 8 ke 10$ jika pendapatan $10.000, dan
jika pendapatan $12.000.
B. Hitung elastisitas permintaan pendapatan ketika
pendapatan anda meningkat dari 10.000 ke
12.000 jika harga 12, dan harga 16$.

SUPPLY, DEMAND, AND GOVERNMENT POLICIES 34

 Soal PR (4)
Apabila pemerintah mengenakan pajak sebesar
500 terhadap mobil mewah apakah harga yang
dibayar konsumen juga akan naik lebih dari 500,
kurang dari 500, atau sama dengan 500? Jelaskan!

SUPPLY, DEMAND, AND GOVERNMENT POLICIES 35