Th1.4: Advantages of Max and Min Prices Flashcards
1
Q
They can be set where MSB = MSC so…
A
allow for some consideration of externalities and so help to increase social welfare
2
Q
A minimum price will ensure goods are…
A
producers get a fair price, reducing poverty and increase equality
3
Q
A maximum price will ensure…
A
goods are affordable, reducing poverty and increase equality
4
Q
What do minimum and maximum prices do?
A
ensure goods are affordable whilst ensuring producers get a fair price, reducing poverty and increasing equality
