Shared Flashcard Set

Details

Title

Chapter 6

Description

Supply Deman and Govt Policies

Total Cards

Subject

Economics

Level

Undergraduate 2

Created

09/24/2007

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Additional Economics Flashcards

Term

When are government control on prices enacted?

Definition

when policymakers believe the market is unfair to buyers or sellers

Term

price ceiling

Definition

legal MAX on price that a good can be sold

Term

price floor

Definition

legal MIN on price at which a good can be sold

Term

Two possible outcomes when the government imposes a price ceiling:

Definition

price not binding if set about equilibrium

price IS binding if set below which causes a shortage