Price support to keep them up all agricultural

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Price Support (to keep them up) - All agricultural products with a marketing board (wheat/grains, milk, eggs, chicken) - Minimum wage laws - Prohibition on Sales Rebate (France) - ….. and the list goes on. Chapter 2: Slide 14 The Impact of Price Control Question: prove that the rent control implies an inefficiency FIGURE 2-6 Rent Controls With the rent control level set at $400 a month, there is an excess demand of 40,000 apartments a month. Chapter 2: Slide 15 The Impact of Direct Price Support Policies Question: prove that the price floor implies an inefficiency FIGURE 2-7 A Price Support in the Butter Market For a price support to have any impact, it needs to be set above the market-clearing price. Its effect is to create excess supply, which the government then purchases.
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