Chapter 4: Problem 9
What is the difference between a price ceiling and a price floor? What effect is the same for both a price ceiling and a price floor?
Chapter 4: Problem 9
What is the difference between a price ceiling and a price floor? What effect is the same for both a price ceiling and a price floor?
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Get started for freeShould grades in an economics class be "rationed" according to dollar price instead of how well a student does on exams? If they were and prospective employers learned of it, what effect might this have on the value of your college degree?
What kind of information does price transmit?
Think of ticket scalpers at a rock concert, a baseball game, or an opera. Might they exist because the tickets to these events were originally sold for less than the equilibrium price? Why or why not? In what way is a ticket scalper like and unlike your retail grocer, who buys food from a wholesaler and then sells it to you?
Explain why fewer exchanges are made when a disequilibrium price (below the equilibrium price) exists than when the equilibrium price exists.
James lives in a rent-controlled apartment and has for the past few weeks been trying to get the supervisor to fix his shower. What does waiting to get one's shower fixed have to do with a rent-controlled apartment?
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