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Chapter 5 Price Controls

Author: Matthew Lonn

Price Controls

Use the power point notes and corresponding videos to understand how the government tries to manipulate prices in an economic system.

Questions you should be able to answer after the lesson.

1. Basic definition of price floor, price ceiling, quota and subsidy.

2. Be able to draw a supply and demand graph for all of the above price controls.

3. Evaluate the market outcome for each price control.

Chapter 5 Notes

Explanation of price floors and price ceilings

Source: You Tube

Brief review of price controls