ECO101H1 Lecture Notes - Price Ceiling, Price Floor, Market Clearing

47 views5 pages
14 Apr 2014
School
Department
Course
Professor
elizabethkandelaki and 40134 others unlocked
ECO101H1 Full Course Notes
98
ECO101H1 Full Course Notes
Verified Note
98 documents

Document Summary

Department of economics, south of robarts st george. Price ceilings (rent controls) and price floors (minimum wage laws) are often unhelpful, and have unintended consequences. Supply, demand and government policy: price ceiling. 1) price ceiling, if beneath the market clearing price, create shortages. 2) principle of voluntary exchange: can"t force people to sell more than they want to sell. Q(p) = minimum (q^d (p), q^s (p)) Can"t force suppliers to force more than 16 units. Quantity demanded does not equal to quantity supplied. 4) those able to buy at the price ceiling could resell to other buyers at the black. Market price of . (supply up to demand curve, buy at and sell at ) 2) discourage construction and maintenance of rental housing (can always find another tenant) 1) to some extent, but at the above cost (significant) Answer: politics, there are more tenants (votes) than there are landlords: price floor.

Get access

Grade+20% off
$8 USD/m$10 USD/m
Billed $96 USD annually
Grade+
Homework Help
Study Guides
Textbook Solutions
Class Notes
Textbook Notes
Booster Class
40 Verified Answers
Class+
$8 USD/m
Billed $96 USD annually
Class+
Homework Help
Study Guides
Textbook Solutions
Class Notes
Textbook Notes
Booster Class
30 Verified Answers

Related textbook solutions

Related Documents

Related Questions