Class Notes (835,600)
Canada (509,275)
Economics (994)
ECON 101 (318)
Lecture

rent ceiling.docx

3 Pages
120 Views
Unlock Document

Department
Economics
Course
ECON 101
Professor
Wokia Kumase
Semester
Fall

Description
Oct 7 Rent ceiling ~If the rent ceiling is below the equilibrium price, then consumers will demand more and producers will supply less. Then the market will force the price back to the equilibrium price. The price consumers willing to pay will be higher than the equilibrium price. We automatically create underproduction. The MSB>MSC, then the dead-weight loss arises. ~ Fair? In terms of fair rules, it is not voluntary exchange, so it is not fair. In terms of fair results, the supply has decreased, so the poor are not guaranteed to have houses. So it’s not fair, since it is not totally benefit the poor. And also lottery, first-come-first-served and discrimination are not leading to a fair outcome. A labor market with a minimum wage ~price floor(applied to labor market: minimum wage) If the minimum wage is below the equilibrium price, the market works as if there were no minimum wage. If the minimum wage is above the equilibrium price. Demand reduces. Supply increases. Unemployment. The original idea of setting a minimum wage is to make more people improve the
More Less

Related notes for ECON 101

Log In


OR

Join OneClass

Access over 10 million pages of study
documents for 1.3 million courses.

Sign up

Join to view


OR

By registering, I agree to the Terms and Privacy Policies
Already have an account?
Just a few more details

So we can recommend you notes for your school.

Reset Password

Please enter below the email address you registered with and we will send you a link to reset your password.

Add your courses

Get notes from the top students in your class.


Submit