Chapter 6 Flashcards
1
Q
What are rent controls?
A
A maximum price set by the government, making it illegal to charge higher prices
2
Q
What are rent controls an example of?
A
Price ceilings
3
Q
What do price ceilings effect?
A
They cause quantities to adjust
4
Q
What are minimum wage laws?
A
A minimum price set by the government, making it illegal to pay a lower price
5
Q
What are minimum wage laws an example of?
A
Price floors
6
Q
What do price floors effect?
A
They cause changes in quantity demanded
