BUS 295 Lecture Notes - Lecture 31: Price Ceiling, Price Controls, Price Floor
Document Summary
Is a measure of how much the quantity supplied of a good responds to a change in the price of that good. Price elasticity of supply = % change in quantity supplied/% change in price. Ability of suppliers to change the amount of the good they sell. Supply is more elastic over longer periods. The steeper the supply curve going through a point, the less elastic it is. March 2014 credit suidde published a report on australian investment. The report highlighted a growing demand of australian residential property by chinese: settlers, temporary, residents and investors. In their deposition to the house of representatives standing committee on economics foreign investment in residential real estate. Price controls are used when policymakers believe the market price is unfair to buyers and sellers. Two possible outcomes of a price ceiling: if the ceiling i above the equilibrium price (not binding) there is no effect.
