2.13 LecNotes

2.13 LecNotes - Admin Wednesday,February06,2008 3:06PM...

Info iconThis preview shows pages 1–4. Sign up to view the full content.

View Full Document Right Arrow Icon
Covering topic 3. Read chapter 5 and 6 and email me questions. Admin Wednesday, February 06, 2008 3:06 PM 0213 Page 1
Background image of page 1

Info iconThis preview has intentionally blurred sections. Sign up to view the full version.

View Full DocumentRight Arrow Icon
Econ 1 – PRINCIPLES OF MICROECONOMICS LECTURE NOTES Foster, UCSD 30-Jan-08 TOPIC 3 – APPLICATIONS A. Price Controls 1) A price ceiling is a law establishing a maximum legal price that may be charged for some good. a) Defn and effects. [Fig. 1] 1. Price Ceilings: 2) If P max < P*, result is a shortage. 3) If P max P*, there is no effect. 0213 Wednesday, January 30, 2008 5:04 PM 0213 Page 2
Background image of page 2
1) Keep price low to help poor people afford it – rent control " SOME states – such as New York have usury laws, which state that interest shall not be charged above a certain percentage." Pasted from < > Congress has opted to put a federal criminal limit on interest rates by the RICO definitions of "unlawful debt" which make it a federal felony to lend money at an interest rate more than two times the local state usury rate and then try to collect that "unlawful debt". [9] Pasted from < http://en.wikipedia.org/wiki/Usury > 2) Punish suppliers -- usury laws (interest rate ceilings). b)
Background image of page 3

Info iconThis preview has intentionally blurred sections. Sign up to view the full version.

View Full DocumentRight Arrow Icon
Image of page 4
This is the end of the preview. Sign up to access the rest of the document.

This note was uploaded on 12/05/2009 for the course ECON 88008 taught by Professor Carollfoster during the Winter '08 term at UCSD.

Page1 / 7

2.13 LecNotes - Admin Wednesday,February06,2008 3:06PM...

This preview shows document pages 1 - 4. Sign up to view the full document.

View Full Document Right Arrow Icon
Ask a homework question - tutors are online