CAS EC 101 Lecture Notes - Lecture 11: Price Floor, Demand Curve, Rent Regulation

• School: Boston University
• Department: Economics
• Course: CAS EC 101
• Professor: Todd Idson

Document Summary

And revenue will go down if inelasticity of demand is elastic. Good news for farming might be bad news for farmers. : instead of shifting supply curve shift demand curve inwards. Price would go down and quantity would go down. Price floor- min price- price can"t go below certain amount. Rent control + wages : rent can"t go above a certain point. Told to study 10 but was only going to study 5. Told to study 2 but will study 5. Monopoly, they will choose price and quantity. Opec produces crude which is an input of gas. Price crude goes up then supply curve of gas shifts inwards. If prices can"t allocate resources= non price resource allocation. 2) black markets develop - at pump you can"t charge than going price, but . 3) discrimination- could give gas to regular customers instead of non regular customers. 4) tie in sales- can get this if you get somethings else.