ch 6
if demand is more inelastic, who will pay more of tax?
buyers
if supply is more elastic, who will pay more of tax?
buyers
price ceiling normally aimed at benfitting
buyers
a binding price floor will reduce a firm's total revenue when..
demand is elastic
prices do not ensure...
equal distribution of goods and services
when a binding price floor is imposed sellers...
have some benefits, but some are harmed
price floor
legal minimum imposed by govt on price at which can be sold
price celing
legal price maximum by govt on price at which can be sold
sellers receive...
less
demand is more elastic in the...
long run
binding constraints
market price now equals price control. forces of supply and demand tend to move toward EQ
buyers pay...
more
not binding constraints
no effect on price or quantity sold
alternative to rent-control laws that wouldn't reduce housing supplied is...
payment by govt of poor family's rent
presence of price control means...
policymakers believed price was unfair to buyers or sellers
in free, competitive market, what is rationing mechanism?
price
binding price floor
price above EQ, results in surplus
for binding price ceiling...
price below EQ, results in shortage
if demand is more elastic, who will pay more of tax?
sellers
if supply is more inelastic, who will pay more of tax?
sellers
price floors normally aimed at benefitting
sellers
buyers and sellers ____ the burden of tax
share
results from either price floor or ceiling...
undesirable rationing mechanisms