Principles Of Microeconomics [australia And New Zealand Edition]

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Principles of Microeconomics 6th edition caters for a single semester introductory unit in Microeconomics. The latest edition of this text continues to focus on important concepts and analyses necessary for students in an introductory economics course. In keeping with the authors’ philosophy of showing students the power of economic tools and the importance of economic ideas, this edition pays careful attention to regional and global policies and economic issues, such as climate change and resource taxation.

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To Belanna, Ariel and Annika Jacqueline and Rebecca Robert Catherine, Nicholas and Peter PRINCIPLES OF MICROECONOMICS Joshua Gans Stephen King Martin Byford N. Gregory Mankiw Principles of microeconomics 6th Edition Joshua Gans Stephen King Martin Byford N. Gregory Mankiw © 2015 Cengage Learning Australia Pty Limited Publishing manager: Dorothy Chiu Senior publishing editor: Michelle Aarons Developmental editor: Gregory Hazelwood Senior project editor: Tanya Simmons Art direction: Danielle Maccarone Permissions/Photo researcher: Miriam Allen Editor: Alan Murphy Proofreader: Craig MacKenzie Indexer: Cenveo Publisher Services Text designer: Fiona Lee, Pounce Studio Cover designer: Fiona Lee, Pounce Studio Typeset by diacriTech Copyright Notice This Work is copyright. No part of this Work may be reproduced, stored in a retrieval system, or transmitted in any form or by any means without prior written permission of the Publisher. Except as permitted under the Copyright Act 1968, for example any fair dealing for the purposes of private study, research, criticism or review, subject to certain limitations. These limitations include: Restricting the copying to a maximum of one chapter or 10% of this book, whichever is greater; providing an appropriate notice and warning with the copies of the Work disseminated; taking all reasonable steps to limit access to these copies to people authorised to receive these copies; ensuring you hold the appropriate Licences issued by the Copyright Agency Limited (“CAL”), supply a remuneration notice to CAL and pay any required fees. For details of CAL licences and remuneration notices please contact CAL at Level 15, 233 Castlereagh Street, Sydney NSW 2000, Tel: (02) 9394 7600, Fax: (02) 9394 7601 Email: [email protected] Website: www.copyright.com.au Any URLs contained in this publication were checked for currency during the production process. Note, however, that the publisher cannot vouch for the ongoing currency of URLs. For product information and technology assistance, in Australia call 1300 790 853; in New Zealand call 0800 449 725 Adapted from Principles of Microeconomics, 7th edition published by South Western © 2015 For permission to use material from this text or product, please email [email protected] National Library of Australia Cataloguing-in-Publication Data Gans, Joshua, author. Principles of microeconomics / Joshua Gans, Stephen King, Martin Byford, N. Gregory Mankiw. 6th edition. 9780170248525 (paperback) Microeconomics--Textbooks. Other Authors/Contributors: King, Stephen, author. Byford, Martin, author. Mankiw, N. Gregory, author. 338.5 Cengage Learning Australia Level 7, 80 Dorcas Street South Melbourne, Victoria Australia 3205 Cengage Learning New Zealand Unit 4B Rosedale Office Park 331 Rosedale Road, Albany, North Shore 0632, NZ For learning solutions, visit cengage.com.au Printed in China by China Translation & Printing Services. 1 2 3 4 5 6 7 18 17 16 15 14 BRIEF CONTENTS Preface to this edition Pre