Chapter Outline - Ch.3 - Market Interference - 9-8-07

Chapter Outline - Ch.3 - Market Interference - 9-8-07 -...

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Microeconomics – Ch. 3 (Interference w/ Market Prices) – 9/8/07 Price controls – A government law or regulation that sets or limits the price to be charge for a particular good. PRICE CEILINGS AND PRICE FLOORS Controls can stipulate a price ceiling , or a maximum price at which a good can be bought and sold. Rent control – A government price control that sets the maximum allowable rent on a house or apartment. The purpose of price control is to help the consumers who must pay the prices Price floor – A government price control that sets the minimum allowable price for a good. o Price floors are imposed by governments in order to help the suppliers of goods and services. Minimum wage – In the labor market, the U.S government requires that firms pay workers a wage of at least a given level, called the minimum wage. (A wage per hour below which it is illegal to pay workers). SHORTAGES AND RELATED PROBLEMS RESULTING FROM PRICE CEILINGS
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This note was uploaded on 04/15/2008 for the course ECON 100 taught by Professor Stephaniemartin during the Fall '07 term at Allegheny.

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Chapter Outline - Ch.3 - Market Interference - 9-8-07 -...

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