New User Special Price Expires in

Let's log you in.

Sign in with Facebook


Don't have a StudySoup account? Create one here!


Create a StudySoup account

Be part of our community, it's free to join!

Sign up with Facebook


Create your account
By creating an account you agree to StudySoup's terms and conditions and privacy policy

Already have a StudySoup account? Login here

EC 101 AA Principles of Microeconomics Chapter 6

by: Meg

EC 101 AA Principles of Microeconomics Chapter 6 EC 101 AA

Marketplace > Boston University > EC 101 AA > EC 101 AA Principles of Microeconomics Chapter 6
View Full Document for 0 Karma

View Full Document


Unlock These Notes for FREE

Enter your email below and we will instantly email you these Notes for Principles of Economics: Microeconomics

(Limited time offer)

Unlock Notes

Already have a StudySoup account? Login here

Unlock FREE Class Notes

Enter your email below to receive Principles of Economics: Microeconomics notes

Everyone needs better class notes. Enter your email and we will send you notes for this class for free.

Unlock FREE notes

About this Document

These notes are from the Lecture as well as the assigned reading from the textbook
Principles of Economics: Microeconomics
Class Notes




Popular in Principles of Economics: Microeconomics

Popular in Department

This 8 page Class Notes was uploaded by Meg on Saturday October 8, 2016. The Class Notes belongs to EC 101 AA at Boston University taught by Edson in Fall 2016. Since its upload, it has received 277 views.

Similar to EC 101 AA at BU


Reviews for EC 101 AA Principles of Microeconomics Chapter 6


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: 10/08/16
Chapter 6: Vocabulary: ● Price ceiling:​ price is not allowed to rise above the maximum level ● Price Floor:​ price cannot fall below this level ● Tax incident:​ how the burden of a task is distributed among the various people who make up an economy Main Ideas: ● Buyers always want a lower price, sellers always want a higher price ● Price ceiling is binding constraint if the good is being sold for price above ceiling ● When the government imposes a price ceiling in a competitive market, a shortage of the good arises, and sellers must ration the scarce goods among the large number of potential buyers ● Both demand and supply elastic in the long run ● A binding price floor causes a surplus ● Prices are the result of millions of business and consumer decisions that lie behind demand and supply curve ● Governments can sometimes improve market outcomes ● Taxes discourage market activity. When a good is taxed, the quantity of the good sold is smaller in the new equilibrium ● Buyers and seller share the burden of taxes. In the new equilibrium, buyers pay more for the good, and sellers receive less ● A tax burden on a market falls more heavily on a market that is inelastic ● Economy is governed by two kinds of laws: law of supply and demand and laws implemented by the government


Buy Material

Are you sure you want to buy this material for

0 Karma

Buy Material

BOOM! Enjoy Your Free Notes!

We've added these Notes to your profile, click here to view them now.


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'

Why people love StudySoup

Bentley McCaw University of Florida

"I was shooting for a perfect 4.0 GPA this semester. Having StudySoup as a study aid was critical to helping me achieve my goal...and I nailed it!"

Amaris Trozzo George Washington University

"I made $350 in just two days after posting my first study guide."

Bentley McCaw University of Florida

"I was shooting for a perfect 4.0 GPA this semester. Having StudySoup as a study aid was critical to helping me achieve my goal...and I nailed it!"


"Their 'Elite Notetakers' are making over $1,200/month in sales by creating high quality content that helps their classmates in a time of need."

Become an Elite Notetaker and start selling your notes online!

Refund Policy


All subscriptions to StudySoup are paid in full at the time of subscribing. To change your credit card information or to cancel your subscription, go to "Edit Settings". All credit card information will be available there. If you should decide to cancel your subscription, it will continue to be valid until the next payment period, as all payments for the current period were made in advance. For special circumstances, please email


StudySoup has more than 1 million course-specific study resources to help students study smarter. If you’re having trouble finding what you’re looking for, our customer support team can help you find what you need! Feel free to contact them here:

Recurring Subscriptions: If you have canceled your recurring subscription on the day of renewal and have not downloaded any documents, you may request a refund by submitting an email to

Satisfaction Guarantee: If you’re not satisfied with your subscription, you can contact us for further help. Contact must be made within 3 business days of your subscription purchase and your refund request will be subject for review.

Please Note: Refunds can never be provided more than 30 days after the initial purchase date regardless of your activity on the site.