Price controls Flashcards by Ece Ahsak

Q

define minimum price

A

a price floor below which the price of a good isn’t allowed to decrease

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Q

effects

A

extension in Qs, contraction Qd, surplus in min wage

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Q

evaluation of price controls

A

black market
costly
if Pmin above eq height of Pmin
lead to dumping, selling of goods below m price to other countries

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