Textbook Notes (368,276)
United States (206,002)
Economics (994)
Chapter 6

Chapter 6.docx

7 Pages
96 Views
Unlock Document

Department
Economics
Course
Economics 10a
Professor
Gregory Mankiw
Semester
Fall

Description
Ec 10a – Chapter 6 09/18/2013 Supply, Demand, and Government Policies Economists have two roles Scientist Policy maker Price Ceiling – Maximum legislated price of a good If equilibrium is above the ceiling, this leads to a shortage Quantity demanded increases but quantity supplied decreases May not actually benefit buyers Example: OPEC gasoline regulations: caused long lines   Rent control also causes a shortage in the short run Tenants get cheaper housing, but it is lower quality Price Floor – Minimum legislated price of a good Can also be harmful, because people won’t buy from sellers, and sellers can’t reduce prices to return to  equilibrium Surplus situation created here harms sellers Minimum Wage is an example of price floor which limits the quantity of jobs available Tax In
More Less

Related notes for Economics 10a

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