ECON 103 Lecture 14: Applications of market structure and market emergence
30 Mar 2017
School
Department
Course
Professor
Document Summary
The demand for postponing pregnancy in the past was very low, and in addition to that, the technology available was not what would be needed in order to open an egg bank. Demand for market intersects with suppliers, and then egg banks can now come into the market and make profit. Effect of tax (such as rent control, or minimum wage) tax per unit is put onto the human egg storage. This causes mc of firm to rise by a dollar. Market supply curve also increases by 1$ How much share the consumer and the firm pays of the depends on a few things (ie: consumer pays 60c, and firm pays 40c) Quota licenses are often in place for agriculture goods (meat, produce, etc. ) Quotas: decrease output, increase prices, create dwl, transfers wealth to some farmers. Quotas must be policed because people know they can make more than the quota amount and profit at the high price.
