Lecture 8 - Lecture 8 Price Controls Video on Home Heating...

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Lecture 8: Price Controls Video on Home Heating Oil Heating oil prices rose because the cold winter increased the demand for heating oil. Heating oil suppliers hold very little inventory, so the supply curve is very steep: the supply of heating oil responds very little to changes in price. Price Ceilings and Floors A price floor is a legal minimum price. An example is the minimum wage. A price floor creates an excess supply or surplus. A price ceiling is a legal maximum price. Rent control is an example. A price ceiling leads to a situation of excess demand or a shortage. There are 4 alternatives to the market as a way of allocating a scarce good: 1. standing in line 2. preferred customers 3. rationing by coupon 4. black markets Lecture 9: Health Care Health Care Spending in the U.S. The United States annually spends nearly $1 trillion, about 14 percent of GDP (a measure of the total amount of goods and services produced during the year), on health care. This comes to around $4000 per capita. The top 1 percent of people ranked by health care
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This note was uploaded on 03/21/2012 for the course ECO ECO2023 taught by Professor Hermbaine during the Winter '09 term at Broward College.

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Lecture 8 - Lecture 8 Price Controls Video on Home Heating...

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