CS 10.1 Pr Cntrls PdctSurp_Conclusions

CS 10.1 Pr Cntrls PdctSurp_Conclusions - depends on the...

Info iconThis preview shows page 1. Sign up to view the full content.

View Full Document Right Arrow Icon
CLASS SUPPLEMENT # 10.1 EFFECTS OF PRICE CONTROLS ON PRODUCER SURPLUS If neither demand nor supply is perfectly elastic or perfectly inelastic: C An effective price floor may or may not enlarge TPS. Because the price effect is positive and the quantity effect is negative, their combined net effect on TPS
Background image of page 1
This is the end of the preview. Sign up to access the rest of the document.

Unformatted text preview: depends on the elasticities of demand and supply. C An effective price ceiling always reduces TPS. (Both the price effect and the quantity effects on TPS are negative.) D:\ECON202\CS\CS 10.1 Pr Cntrls PdctSurp_Conclusions.wpd...
View Full Document

{[ snackBarMessage ]}

Ask a homework question - tutors are online