Macroeconomics 2/17/2016 Economics 111
Popular in Macroeconomics
Popular in Economcs
This 1 page Class Notes was uploaded by amber weiss on Thursday February 18, 2016. The Class Notes belongs to Economics 111 at Southern Illinois University Edwardsville taught by Mary Anne Pettit in Spring 2016. Since its upload, it has received 29 views. For similar materials see Macroeconomics in Economcs at Southern Illinois University Edwardsville.
Reviews for Macroeconomics 2/17/2016
Report this Material
What is Karma?
Karma is the currency of StudySoup.
You can buy or earn more Karma at anytime and redeem it for class notes, study guides, flashcards, and more!
Date Created: 02/18/16
Macroeconomics Price Ceilings and Price Suppors (floors) February 17, 2016 Price Ceilings: LEGAL price set BELOW equilibrium Control: only type of price "control" or price cap is set below equilibrium Impacts of Price Ceilings: 1. Shortages- formal rationing/ queing (List) 1. Black markets- illegal/ under-the-table activity 1. Distribution of market signals and misallocation of resources- price of 1 Qs; different prices, different signals Price Supports/Floor: LEGAL price set ABOVE equilibrium Impacts of Price Floors/Supports 1. Surplus- when Qs exceeds Qd 1. Surplus disposal or control required o Disposal: government buys the surplus o Control: pay producers NOT to produce 3. Distortion of market signals and misallocation of resources
Are you sure you want to buy this material for
You're already Subscribed!
Looks like you've already subscribed to StudySoup, you won't need to purchase another subscription to get this material. To access this material simply click 'View Full Document'