ECON 2030 Final: ECON Notes Today
Document Summary
Markets are not always able to return to equilibrium level. There are serious of social, governmental, or some other sort of interference thrown into the mix that may have an effect: price. Price ceiling is a maximum allowable price for a good or service. Price floor is minimum allowable price for a good or service. Quantity restriction is a limit on the number of transactions that can take place of a good or service. Non-binding if the imposed price ceiling is above or equal. Binding if price ceiling is below equilibrium price. Selling a smaller number of a good or selling at a lower. For buyers as a group, some are better off some are better: price floor price is bad for businesses. off. Quantity equal to equilibrium price, it is non-binding. As price increases, number of buyers willing to buy will go down. Hurricane isaac declared state of emergency: anti-price gouging law.