In class students learned that the government sometimes steps in and uses price or quantity controls to appease one portion of the population. There are two types of price controls: (1) Price Ceilings (ex. rent controls) and (2) Price Floors (ex. minimum wage). However, problems do arise from implementing these policies. There is one type of quantity control, or quota, that is used creating a deadweight loss for both producers and consumers.
The homework is listed below and the classwork is attached as are the class notes.
CW - Practice Quiz
Notes - Price and Quantity Controls
HW - Finish Quiz Review
Read Modules 46, 47, 48
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