ECON 051 Lecture : Chapter 6_ Supply, Demand And Government Policies
Document Summary
Price ceiling: a legal maximum on the price at which a good can be sold. Price oor: a legal minimum on the price at which a good can be sold iminium age. How price ceilings affect market outcomes nosing a) rice ce ng u ones : a se ce ng. > rice ce ing "s no - sinding econotn o. > rice ceiling is a sinding cms ra "s econotn o. When the government imposes a binding price ceiling on a competitive market, a shortage of the good arises, and sellers must ration the scarce goods among the large number of potential buyers. 3- ce ce ng e teh con ro. Scenario: rent control in the short run and the long. Rent control in the short run (supply and demand are inelastic) 1- ecuc ion " n ren - s supp: o zen.
