5 Flashcards
1
Q
What is a price control?
A
government controlling
2
Q
What are the economic consequences of price controls?
A
unemployment (surplus) or shortages
3
Q
What is a price ceiling?
A
controlled max price
4
Q
When is a price ceiling binding?
A
when its below equilibrium
5
Q
What are the economic impacts of price ceilings?
A
shortages
6
Q
What is a price floor?
A
controlled min price
7
Q
When is a price floor binding?
A
when its above equilibrium
8
Q
What are the economic impacts of price floors?
A
unemployment/surplus
