'Binding price floor' diaporamas de présentation

SUPPLY, DEMAND, AND GOVERNMENT POLICIES

SUPPLY, DEMAND, AND GOVERNMENT POLICIES. Overview. Economists have two roles: As scientists, they develop and test theories to explain the world around them. As policy advisers, they use their theories to help change the world for the better

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Chapter 6

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- Bharathi

- Bharathi. Market Equilibrium. The Market Mechanism. Market Mechanism Summary 1) Supply and demand interact to determine the equilibrium price. 2) When not in equilibrium, the market will adjust to a shortage or surplus and return to the equilibrium.

426 views • 24 slides

CONTROLS ON PRICES

CONTROLS ON PRICES. Are usually enacted when policymakers believe the market price is unfair to buyers or sellers. Price Ceiling - legal maximum on the price at which a good can be sold. Price Floor - legal minimum on the price at which a good can be sold. . Price Ceiling.

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1. Which of the following are true about the results of a binding price ceiling and rent control?

1. Which of the following are true about the results of a binding price ceiling and rent control? . Long lines Inefficient market Inefficient allocation of resources Discrimination Bribery Rationing based on market prices 1,2,3 only All except 6 All of the above.

143 views • 4 slides