This preview shows page 1. Sign up to view the full content.
Unformatted text preview: Results in disequilibrium o Price controls: Government regulation that sets or limits the price of a good. A. Price Ceiling: Sets a maximum price a. An effective price ceiling is below equilibrium. b. The quantity supplied is less than quantity demanded: Shortage i. Example: Rent controls B. Price floor: Sets a minimum price a. An effective floor: Above equilibrium i. Example: Agricultural Price supplements 1. Quantity Demanded < Quantity Supplied: Surplus b. Minimum Wage...
View Full Document
This note was uploaded on 04/15/2008 for the course ECON 100 taught by Professor Stephaniemartin during the Fall '07 term at Allegheny.
- Fall '07