Unformatted text preview: charged A. Examples include: insurance and utility rates, gasoline and natural gas, food, prescription drugs, rent controlled apartments, tuition. 4. Price Floor: a price ceiling is a government imposed limit on how low a dollar-price can be charged A. A price floor imposed above (below) the equilibrium price is effective (ineffective) 5. Since marginal values are higher than the legal price, there is room for mutual benefit to occur between market participants. a. Suppose those on the demand side are tenants and those on the supply side are landlords. 6. While it may seems paradoxical to many, the best way to help tenants is to grant economic freedom to landlords. 7. Subsidies (as a supply determinant): reverse tax....
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This note was uploaded on 04/05/2008 for the course PHIL 110 taught by Professor Lysaker during the Fall '08 term at Oregon.
- Fall '08