Chapter_6 - Ch.6:MarketsinAction Priceceilings Pricefloors...

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    Ch. 6: Markets in Action Price ceilings Price floors Taxes Subsidies & Quotas
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    Housing Markets and Rent Ceilings Unregulated housing market  shortage     rents     quantity supplied (short run),  shifts supply rightward (long run) rents  , housing 
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    Regulated housing market rent ceiling makes   rents illegal housing stocks lower than unregulated market in  short and long run shortage   excess demand  search activity black markets Housing Markets and Rent Ceilings
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Search activity
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    Labour Markets and Rent Floors: Minimum wage price floor  is a regulation that makes it illegal to trade at a  price lower than a specified level When a price floor is applied to labor markets, it is called a  minimum wage If the minimum wage is set  below  the equilibrium wage rate,  it has no effect. The market works as if there were no  minimum wage If the minimum wage is set  above  the equilibrium wage rate,  it has powerful effects
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    Minimum wage illegal to hire labour below specified wage create excess supply of labour and 
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This note was uploaded on 09/25/2010 for the course ECON ECON 1000 taught by Professor Noordeh during the Fall '09 term at York University.

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Chapter_6 - Ch.6:MarketsinAction Priceceilings Pricefloors...

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