Chapter 6-9: Notes

University:
San Diego State University
Course:
ECON 102 | Principles of Economics
Academic year:

2023
Views:

103

Pages:

9
Author:

Kristin K.

Chapter 6-Price Controls Priceciling-legal maximum on the price of a good or service ex rent control Price Floor- legal minimum on the price of a good or service ex. minimum wage binding-impacts of affects the market in that it mores the price away from the equlibrium nanbinding does not impact the market equilibrium price still occurs 14 $10 191 Price floor of $14 is imposed: binding QD=30 Q=70 excess supply of 70-30=40 Price thoor of $10 is imposed non binding P=100-50 Price floor of 48 is imposed: non binding pa-10 Q80 30 40 50 65 D 70 Q Price ceiling of 58 18 imposed. binding Q=100265 Price caling of $10 imposed: non binding P=10 Q'ags 65-40-25 excess domand shortage Price Gelling of #14 is impered non-binding "PalDQE-50 Chapter 9-International Trade A cantry has comparative advantage in a good if it produces That good at a lower opportunity cost than other countries. Pw The world price of Po a good The domestic price of a good If Pos Pr the country has a comparative advantage in this good and under free trade we export. If Po Pr the cantry does not have a comparative advantage in that good and we mill import the good. The smal market or small economy assumption: a small economy is a price taker in the world marker at this country has no impact on the world price, Pri

Chapter 6-9: Notes

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