Week4_class - Wasted resources Inefficiently high quality...

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Econ 2005 Week 4 Market Restrictions
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  Econ 2005 2 Outline Price controls Price ceiling Price floor Quantity controls—quota Excise tax Deadweight Loss
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3 The Effects of a Price Ceiling:   The Market for Apartments Price Quantity S D
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  Econ 2005 4 Inefficient allocation to consumers Wasted resources The Art of Persuading Tenants to Move  Inefficiently low quality They also produce  black markets . Price ceilings often lead to  inefficiency  in the forms of:
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  Econ 2005 5 The Effects of a Price Floor: Labor Market Price Quantity S D
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  Econ 2005 6 Inefficient allocation of sales among sellers
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Unformatted text preview: Wasted resources Inefficiently high quality They can also can provide an incentive for illegal activity (Ex.: black labor ). Price floors often lead to inefficiency in the forms of: Econ 2005 7 Effect of a Quota: Market for Taxi Rides Price Quantity S D Econ 2005 8 Effect of an Excise Tax Levied on the Sales of Taxi Rides Price Quantity S D Econ 2005 9 Effect of an Excise Tax Levied on Purchases of Taxi Rides Price Quantity S D Econ 2005 10 Deadweight loss from a tax Price Quantity S D...
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Week4_class - Wasted resources Inefficiently high quality...

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