week 6 government policy Flashcards
1
Q
Pricing ceiling?
A
it is the legal maximum price that the government body emplaced.
2
Q
What does the pricing ceiling cause?
A
Pricing ceiling cause shortage
3
Q
Pricing flooring?
A
Price flooring is the legal minimum price imposed by the government body
4
Q
What does price flooring cause?
A
Price flooring cause surplus
5
Q
what is tax incidence?
A
it is how the tax is shared among the market participants.
