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  • Chap 06

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    Vương Hoàng Yến Trang
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    This document discusses price ceilings and floors and their applications. Price ceilings, which set maximum prices, are used for goods like gasoline and renting houses. Price floors, which set minimum prices, are used for agricultural products. The document also contains graphs illustrating the effects of binding and non-binding price floors and ceilings, creating either surpluses or shortages. It additionally discusses using taxes to shift demand curves and formulas for calculating tax surplus and burden.

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    MICROECONOMICS - MANKIW - CHAP 6

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    Chap06

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    This document discusses price ceilings and floors and their applications. Price ceilings, which set maximum prices, are used for goods like gasoline and renting houses. Price floors, which set minimum prices, are used for agricultural products. The document also contains graphs illustrating the effects of binding and non-binding price floors and ceilings, creating either surpluses or shortages. It additionally discusses using taxes to shift demand curves and formulas for calculating tax surplus and burden.

    Copyright:

    © All Rights Reserved
    Download as PDF, TXT or read online from Scribd
    Flag for inappropriate content
    7 views30 pages

    Chap 06

    Uploaded by

    Vương Hoàng Yến Trang
    This document discusses price ceilings and floors and their applications. Price ceilings, which set maximum prices, are used for goods like gasoline and renting houses. Price floors, which set minimum prices, are used for agricultural products. The document also contains graphs illustrating the effects of binding and non-binding price floors and ceilings, creating either surpluses or shortages. It additionally discusses using taxes to shift demand curves and formulas for calculating tax surplus and burden.

    Copyright:

    © All Rights Reserved
    Download as PDF, TXT or read online from Scribd
    Flag for inappropriate content
    of 30

    Ex: applications of price ceiling: gasoline, renting house, social housing

    First come, first serve


    Because
    highly skilled
    workers have
    higher wage

    Ex: applications of price floor: agricultural products


    Surplus C

    A,B
    binding, shortage
    Shortage
    not binding

    binding, surplus
    ADD TAXES TO 5 FACTORS SHIFT DEMAND CỦVE
    PE =

    T = 1.5$
    T = TS + TB
    TB = PB - PE = 11 - 10 = 1
    TS = PE - PS = 10 - 9.5 = 0.5

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