Price Controls

Front

A binding maximum legal price in a market

Back

Price ceiling

Front

Who are price ceilings intended to benefit?

Back

Consumers

Front

Shortages, lower quality goods, and increased search costs, are all associated with

Back

Price ceilings

Front

Rent control, an attempt to make housing more attainable when prices rise too high is an example of a

Back

Price ceiling

Front

Which of the following is an argument in support of rent control?

Back

Housing prices in certain areas are rising faster than wages.

Front

A binding legal minimum price in a market

Back

Price floor

Front

Price floors are intended to protect

Back

Sellers of a good or service

Front

Binding price floors often result in a market

Back

Surplus

Front

Which of the following is an argument supporting an increase to the minimum wage?
Options:
98.5% of workers earn higher than minimum wage.
Wages have not kept pace with increases in worker productivity.
There will be fewer jobs available for low-skilled workers.
It may increase the cost of bringing goods and services to market.

Back

Wages have not kept pace with increases in worker productivity.

Front

Where would a binding price ceiling need to be set in this market?

Back

$600