As long as ceiling is below equilibrium price, the desired quantity
demanded will exceed the quantity supplied.
Rent Seeking, Politics, and Elasticities
If price controls reduce total consumer and producer surplus, why do
governments institute them?
Exegeneus Variables: are determined by facters net discussed in the medel (far apartments)
Endegeneus Variables: are determined by ferces vvithin the medel (clese apartments)
Optimizatien principle: peeple try te cheese the best patterns ef censumptien t
Theory (Monopoly) has 3 primary Assumptions:
I There is one seller, and the firm is the industry.
o Opposite of the competitive Market, where many firms
compete and supply, there is only one seller.
I Seller offers a product having n