Concept #1: Price Ceilings
Example #1: Price Ceilings
Practice: When the government imposes a binding price ceiling, it causes
Practice: A price ceiling will have no impact on a market if it is set
Practice: All of the following are problems associated with price ceilings except:
Concept #2: Price Floors and Black Markets
Example #2: Price Floors
Practice: Which of the following statements regarding the expected effects of a price control imposed on a competitive market is false?