Econ 2-7-2011 - • Interfering with these markets will...

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Econ 2-7-2010 14:48 Inefficiently Low Quantity:      Competitive equilibrium is inefficient. Deadweight Loss:       The loss of total surplus due to market intervention. Quota/Quota Limit:      An upper limit on the quantity can be bought or sold of some  good. Quota Wedge:      Gap between demand price, and supply price Competitive Markets are Efficient.
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Unformatted text preview: • Interfering with these markets will lead to inefficiencies (price controls, quantity controls). How Much do prices and quantities change? • Depends on the slopes of s and d and how much they shift • We measure these features with elasticity 14:48 14:48...
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This note was uploaded on 10/04/2011 for the course ECON 201 taught by Professor C.liedholm during the Spring '07 term at Michigan State University.

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Econ 2-7-2011 - • Interfering with these markets will...

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