Advantages of a maximum price | Black market & a maximum price | Calculations & a maximum price | Ceiling Price | Maximum Price Control | Reasons for a maximum price
A government measure that prohibits the charging of a price higher than a certain level is termed a:
Referring to the graph, fully explain the consequences of a Maximum Price Control on the market for houses for rent. Include the following: quantity demanded before and after the price control/ quantity supplied before and after the price control/ a problem the price control might create and a possible solution for the problem outlined.
What would the difference between Q and Qs indicate?
How would you calculate the change in the total value of sales after a maximum price is imposed?
The government wants to reduce the cost of houses for rent for consumers. A price control and subsidy could achieve the same market price of $350 but have different effects on the quantity supplied. (i) How much would a subsidy have to be to achieve a market price of $350? (ii) For the subsidy option and maximum price calculate the change in quantity supplied.
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