ECON 2000 1st Edition Lecture 11Outline of Last Lecture XXX. Minimum Wage Lawsa. Why is it establishedb. Effects of the price floorc. Pros for no minimal waged. Pros for minimum wageOutline of Current Lecture XXXI. Price Ceilinga. Legally established maximum priceb. Examplec. Binding/effectiveCurrent LectureXXXI. Price Ceilinga. Legally established maximum pricei. By law price cannot b. Examplei. Rent controlii. Price caps on rent can be a price ceilingiii. Rent caps can be binding effective in one place but not another1. A rent price max of $1,000 would be well below market equilibrium in Boston, but well above market equilibrium in BGc. Binding/effectivei. Must be set below market equilibriumii. Sets an artificial shortageiii. Creates the secondary rationing device1. Primary rationing device is ALWAYS price2. Others include:a. Back ground checksb. Credit checksc. First comes first servesd. Age limite. LotteryThese notes represent a detailed interpretation of the professor’s lecture. GradeBuddy is best used as a supplement to your own notes, not as a
View Full Document
Unlocking...