, THE PEARSON SERIES IN ECONOMICS
Abel/Bernanke/Croushore Fort Leeds/von Allmen Riddell/Shackelford/Stamos/
Macroeconomics* Sports Economics The Economics of Sports Schneider
Bade/Parkin Froyen Leeds/von Allmen/Schiming Economics: A Tool for
Foundations of Economics* Macroeconomics Economics* Critically Understanding
Society
Berck/Helfand Fusfeld Lipsey/Ragan/Storer
The Economics of the The Age of the Economist Economics* Ritter/Silber/Udell
Environment Principles of Money, Banking
Gerber Lynn & Financial Markets*
Bierman/Fernandez International Economics* Economic Development:
Game Theory with Theory and Practice for a Roberts
Gordon
Economic Applications Divided World The Choice: A Fable of Free
Macroeconomics*
Trade and Protection
Blanchard Greene Miller
Macroeconomics* Economics Today* Rohlf
Econometric Analysis
Blau/Ferber/Winkler Introduction to Economic
Gregory Understanding Modern Reasoning
The Economics of Women, Essentials of Economics Economics
Men and Work Ruffin/Gregory
Gregory/Stuart Miller/Benjamin Principles of Economics
Boardman/Greenberg/Vining/ Russian and Soviet Economic The Economics of Macro
Weimer Performance and Structure Issues Sargent
Cost-Benefit Analysis Rational Expectations and
Hartwick/Olewiler Miller/Benjamin/North
Boyer Inflation
The Economics of Natural The Economics of Public
Principles of Transportation Issues Sawyer/Sprinkle
Resource Use
Economics International Economics
Heilbroner/Milberg Mills/Hamilton
Branson Urban Economics Scherer
The Making of the Economic
Macroeconomic Theory and Industry Structure, Strategy,
Society Mishkin
Policy and Public Policy
Heyne/Boettke/Prychitko The Economics of Money,
Brock/Adams
The Economic Way of Banking, and Financial Schiller
The Structure of American
Thinking Markets* The Economics of Poverty
Industry
Hoffman/Averett The Economics of Money, and Discrimination
Bruce
Women and the Economy: Banking, and Financial Sherman
Public Finance and the
Family, Work, and Pay Markets, Business School Market Regulation
American Economy
Holt Edition*
Carlton/Perloff Silberberg
Markets, Games and Strategic Macroeconomics: Policy and Principles of Microeconomics
Modern Industrial
Behavior Practice*
Organization Stock/Watson
Hubbard/O’Brien Murray Introduction to Econometrics
Case/Fair/Oster
Economics* Econometrics: A Modern
Principles of Economics* Introduction to Econometrics,
Money, Banking, and the Introduction
Caves/Frankel/Jones Brief Edition
Financial System* Nafziger
World Trade and Payments: Studenmund
An Introduction Hughes/Cain The Economics of Developing
Countries Using Econometrics: A
American Economic History Practical Guide
Chapman
Environmental Economics: Husted/Melvin O’Sullivan/Sheffrin/Perez
Economics: Principles, Tietenberg/Lewis
Theory, Application, and International Economics
Applications and Tools* Environmental and Natural
Policy Jehle/Reny Resource Economics
Cooter/Ulen Advanced Microeconomic Parkin
Theory Economics* Environmental Economics
Law & Economics
and Policy
Downs Johnson-Lans Perloff
An Economic Theory of A Health Economics Primer Microeconomics* Todaro/Smith
Democracy Economic Development
Keat/Young Microeconomics: Theory and
Ehrenberg/Smith Managerial Economics Applications with Calculus* Waldman
Modern Labor Economics Microeconomics
Klein Perman/Common/
Ekelund/Ressler/Tollison Mathematical Methods McGilvray/Ma Waldman/Jensen
Economics* for Economics Natural Resources and Industrial Organization:
Environmental Economics Theory and Practice
Farnham Krugman/Obstfeld/Melitz
Economics for Managers International Economics: Phelps Weil
Theory & Policy* Health Economics Economic Growth
Folland/Goodman/Stano
The Economics of Health Laidler Pindyck/Rubinfeld Williamson
and Health Care The Demand for Money Microeconomics* Macroeconomics
*denotes titles Log onto www.myeconlab.com to learn more
,Microeconomics
SIXTH EDITION
, To my mother, Mimi Perloff
Editorial Director: Sally Yagan Senior Manufacturing Buyer: Carol Melville
Editor in Chief: Donna Battista Director of Media: Susan Schoenberg
Senior Acquisitions Editor: Adrienne D’Ambrosio Senior Media Producer: Melissa Honig
Assistant Editor: Jill Kolongowski MyEconLab Content Lead: Noel Lotz
Director of Marketing: Patrice Jones Senior Author Support/Technology Specialist: Joe Vetere
Senior Marketing Manager: Lori DeShazo Image Manager/Image Asset Services: Rachel Youdelman
Marketing Assistant: Ian Gold Photo Researcher: Diane Austin
Senior Managing Editor: Nancy H. Fenton Copyeditor: Rebecca Greenberg
Senior Production Project Manager: Meredith Gertz Proofreader: Holly McLean-Aldis
Permissions Project Supervisor: Michael Joyce Indexer: Jack Lewis
Cover Designer: Jonathan Boylan Illustrations: Donna Ellison
Cover Photo: Jonathan Boylan; blocks by Vasa Production Coordination, Text Design, and Composition:
Supplements Editor: Alison Eusden Gillian Hall, The Aardvark Group
Credits and acknowledgments borrowed from other sources and reproduced, with permission, in
this textbook appear on appropriate page within the text and on page A-78.
Many of the designations by manufacturers and seller to distinguish their products are claimed as
trademarks. Where those designations appear in this book, and the publisher was aware of a trade-
mark claim, the designations have been printed in initial caps or all caps.
Library of Congress Cataloging-in-Publication Data
Perloff, Jeffrey M.
Microeconomics / Jeffrey Perloff.—6th ed.
p. cm.
Includes bibliographical references and index.
ISBN 978-0-13-139263-2 (alk. paper)
1. Microeconomics. I. Title.
HB172.P39 2012
338.5—dc22
2010050602
Copyright © 2012, 2009, 2006, 2003, 2000 Pearson Education, Inc., publishing as Addison-
Wesley, 75 Arlington Street, Boston, MA 02116. All rights reserved. Manufactured in the United
States of America. This publication is protected by Copyright, and permission should be obtained
from the publisher prior to any prohibited reproduction, storage in a retrieval system, or transmis-
sion in any form or by any means, electronic, mechanical, photocopying, recording, or likewise.
To obtain permission(s) to use material from this work, please submit a written request to
Pearson Education, Inc., Rights and Contracts Department, 501 Boylston Street, Suite 900,
Boston, MA 02116, fax your request to 617-671-3447, or e-mail at www.pearsoned.com/legal/
permissions.htm.
Addison-Wesley
is an imprint of
ISBN-13: 978-0-13-139263-2
ISBN-10: 0-13-139263-8
www.pearsonhighered.com 1 2 3 4 5 6 7 8 9 10—DOW—14 13 12 11 10
Abel/Bernanke/Croushore Fort Leeds/von Allmen Riddell/Shackelford/Stamos/
Macroeconomics* Sports Economics The Economics of Sports Schneider
Bade/Parkin Froyen Leeds/von Allmen/Schiming Economics: A Tool for
Foundations of Economics* Macroeconomics Economics* Critically Understanding
Society
Berck/Helfand Fusfeld Lipsey/Ragan/Storer
The Economics of the The Age of the Economist Economics* Ritter/Silber/Udell
Environment Principles of Money, Banking
Gerber Lynn & Financial Markets*
Bierman/Fernandez International Economics* Economic Development:
Game Theory with Theory and Practice for a Roberts
Gordon
Economic Applications Divided World The Choice: A Fable of Free
Macroeconomics*
Trade and Protection
Blanchard Greene Miller
Macroeconomics* Economics Today* Rohlf
Econometric Analysis
Blau/Ferber/Winkler Introduction to Economic
Gregory Understanding Modern Reasoning
The Economics of Women, Essentials of Economics Economics
Men and Work Ruffin/Gregory
Gregory/Stuart Miller/Benjamin Principles of Economics
Boardman/Greenberg/Vining/ Russian and Soviet Economic The Economics of Macro
Weimer Performance and Structure Issues Sargent
Cost-Benefit Analysis Rational Expectations and
Hartwick/Olewiler Miller/Benjamin/North
Boyer Inflation
The Economics of Natural The Economics of Public
Principles of Transportation Issues Sawyer/Sprinkle
Resource Use
Economics International Economics
Heilbroner/Milberg Mills/Hamilton
Branson Urban Economics Scherer
The Making of the Economic
Macroeconomic Theory and Industry Structure, Strategy,
Society Mishkin
Policy and Public Policy
Heyne/Boettke/Prychitko The Economics of Money,
Brock/Adams
The Economic Way of Banking, and Financial Schiller
The Structure of American
Thinking Markets* The Economics of Poverty
Industry
Hoffman/Averett The Economics of Money, and Discrimination
Bruce
Women and the Economy: Banking, and Financial Sherman
Public Finance and the
Family, Work, and Pay Markets, Business School Market Regulation
American Economy
Holt Edition*
Carlton/Perloff Silberberg
Markets, Games and Strategic Macroeconomics: Policy and Principles of Microeconomics
Modern Industrial
Behavior Practice*
Organization Stock/Watson
Hubbard/O’Brien Murray Introduction to Econometrics
Case/Fair/Oster
Economics* Econometrics: A Modern
Principles of Economics* Introduction to Econometrics,
Money, Banking, and the Introduction
Caves/Frankel/Jones Brief Edition
Financial System* Nafziger
World Trade and Payments: Studenmund
An Introduction Hughes/Cain The Economics of Developing
Countries Using Econometrics: A
American Economic History Practical Guide
Chapman
Environmental Economics: Husted/Melvin O’Sullivan/Sheffrin/Perez
Economics: Principles, Tietenberg/Lewis
Theory, Application, and International Economics
Applications and Tools* Environmental and Natural
Policy Jehle/Reny Resource Economics
Cooter/Ulen Advanced Microeconomic Parkin
Theory Economics* Environmental Economics
Law & Economics
and Policy
Downs Johnson-Lans Perloff
An Economic Theory of A Health Economics Primer Microeconomics* Todaro/Smith
Democracy Economic Development
Keat/Young Microeconomics: Theory and
Ehrenberg/Smith Managerial Economics Applications with Calculus* Waldman
Modern Labor Economics Microeconomics
Klein Perman/Common/
Ekelund/Ressler/Tollison Mathematical Methods McGilvray/Ma Waldman/Jensen
Economics* for Economics Natural Resources and Industrial Organization:
Environmental Economics Theory and Practice
Farnham Krugman/Obstfeld/Melitz
Economics for Managers International Economics: Phelps Weil
Theory & Policy* Health Economics Economic Growth
Folland/Goodman/Stano
The Economics of Health Laidler Pindyck/Rubinfeld Williamson
and Health Care The Demand for Money Microeconomics* Macroeconomics
*denotes titles Log onto www.myeconlab.com to learn more
,Microeconomics
SIXTH EDITION
, To my mother, Mimi Perloff
Editorial Director: Sally Yagan Senior Manufacturing Buyer: Carol Melville
Editor in Chief: Donna Battista Director of Media: Susan Schoenberg
Senior Acquisitions Editor: Adrienne D’Ambrosio Senior Media Producer: Melissa Honig
Assistant Editor: Jill Kolongowski MyEconLab Content Lead: Noel Lotz
Director of Marketing: Patrice Jones Senior Author Support/Technology Specialist: Joe Vetere
Senior Marketing Manager: Lori DeShazo Image Manager/Image Asset Services: Rachel Youdelman
Marketing Assistant: Ian Gold Photo Researcher: Diane Austin
Senior Managing Editor: Nancy H. Fenton Copyeditor: Rebecca Greenberg
Senior Production Project Manager: Meredith Gertz Proofreader: Holly McLean-Aldis
Permissions Project Supervisor: Michael Joyce Indexer: Jack Lewis
Cover Designer: Jonathan Boylan Illustrations: Donna Ellison
Cover Photo: Jonathan Boylan; blocks by Vasa Production Coordination, Text Design, and Composition:
Supplements Editor: Alison Eusden Gillian Hall, The Aardvark Group
Credits and acknowledgments borrowed from other sources and reproduced, with permission, in
this textbook appear on appropriate page within the text and on page A-78.
Many of the designations by manufacturers and seller to distinguish their products are claimed as
trademarks. Where those designations appear in this book, and the publisher was aware of a trade-
mark claim, the designations have been printed in initial caps or all caps.
Library of Congress Cataloging-in-Publication Data
Perloff, Jeffrey M.
Microeconomics / Jeffrey Perloff.—6th ed.
p. cm.
Includes bibliographical references and index.
ISBN 978-0-13-139263-2 (alk. paper)
1. Microeconomics. I. Title.
HB172.P39 2012
338.5—dc22
2010050602
Copyright © 2012, 2009, 2006, 2003, 2000 Pearson Education, Inc., publishing as Addison-
Wesley, 75 Arlington Street, Boston, MA 02116. All rights reserved. Manufactured in the United
States of America. This publication is protected by Copyright, and permission should be obtained
from the publisher prior to any prohibited reproduction, storage in a retrieval system, or transmis-
sion in any form or by any means, electronic, mechanical, photocopying, recording, or likewise.
To obtain permission(s) to use material from this work, please submit a written request to
Pearson Education, Inc., Rights and Contracts Department, 501 Boylston Street, Suite 900,
Boston, MA 02116, fax your request to 617-671-3447, or e-mail at www.pearsoned.com/legal/
permissions.htm.
Addison-Wesley
is an imprint of
ISBN-13: 978-0-13-139263-2
ISBN-10: 0-13-139263-8
www.pearsonhighered.com 1 2 3 4 5 6 7 8 9 10—DOW—14 13 12 11 10
