Ch. 6 Flashcards
binding price ceiling
A price ceiling that prevents the market from reaching equilibrium price, meaning that the highest price sellers can charge is set below equilibrium price
binding price floor
A price floor that prevents the market from reaching the equilibrium price, meaning that the lowest price that sellers can charge is above equilibrium price
economic burden
The burden created by the change in after-tax prices faced by buyers and sellers
mandate
A requirement to buy or sell a minimum amount of a good
price ceiling
A maximum price that sellers can charge
price floor
A minimum price that sellers can charge
quantity regulation
A minimum or maximum quantity that can be sold
quotas
A limit on the maximum quantity of a good that can be sold
statutory burden
the burden of being assigned by the government to send a tax payment
subsidy
A payment made by the government to those who make a specific choice
tax incidence
The division of the economic burden of a tax between buyers and sellers
