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Unformatted text preview: the large potential buyers How price floors affect market outcomes: A binding price floor causes a surplus Evaluating price controls: Ex. wage subsidy- earned income tax credit, govt program that supplements the incomes of low-wage workers Taxes: Tax incidence- distribution of a tax burden Decide whether law affects supply or demand curve; which way the curve shifts; examine how the shift affects the quilibrium 13/09/2007 09:55:00 13/09/2007 09:55:00...
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