Ch6 Flashcards
1
Q
Price ceiling
A
Legal maximum on prices (if eqm above, shortage)
2
Q
Price floor
A
Legal minimum on prices (if eqm below, surplus)
3
Q
Tax incidence + equation
A
The manner in which the burden of a tax is shared among participants in a market (what I pay - what I used to pay / tax)
4
Q
What happens when there is a tax imposed on a s and D curve?
A
Willingness to supply decreasss, shifts the vertical distance of the price. Pressure on rice
