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