CH 5 Markets in - MarketsinAction 23:14 5.1: (single) . 5.2

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Markets in Action 23:14 5.1: THE INTERACTION AMONG MARKETS Partial-equilibrium analysis is appropriate when the (single) market being examined is  small relative to the entire economy. Most common study in microeconomics General-equilibrium analysis is the study of all markets together. 5.2: GOVEERMENT-CONTROLLED PRICING Government price controls are policies that attempt to hold the price of some good or  service at some disequilibrium value. At disequilibrium price, quantity exchanges is det. by the lesser of the quantity  demanded or quantity supplied. A binding price floor is the set above the equilibrium price; excess supply A binding price ceiling is the set below the equilibrium price. Excess demand. Black  markets. Seller’s preference and rationing ( 5.3: RENT CONTROLS: A CASE STUDY OF PRICE CEILINGS Rent control causes housing shortage that worsens over time.  Sr is quite inelastic, and 
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This note was uploaded on 10/19/2011 for the course ECON 101/102 taught by Professor Gateman&neary during the Spring '09 term at The University of British Columbia.

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CH 5 Markets in - MarketsinAction 23:14 5.1: (single) . 5.2

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