Flashcards
Government Intervention: The Cost of Interfering with Market Forces
Flashcards do conjunto (4)
- 1Price Ceilinga maximum allowable price imposed by the government
- 2Deadweight Lossloss in economic surplus due to the market being prevented from reaching the equilibrium price and quantity where marginal benefit equals marginal cost
- 3Price Floora minimum allowable price imposed by the government
- 4Result of applying tax to a highly elastic supply and demand equilibriumBigger dead weight loss