Econ 2-7-2011 - Interfering with these markets will lead to...

Info iconThis preview shows pages 1–3. Sign up to view the full content.

View Full Document Right Arrow Icon
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.
Background image of page 1

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

View Full DocumentRight Arrow Icon
Background image of page 2
Background image of page 3
This is the end of the preview. Sign up to access the rest of the document.

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...
View Full Document

Page1 / 3

Econ 2-7-2011 - Interfering with these markets will lead to...

This preview shows document pages 1 - 3. Sign up to view the full document.

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