Chapter 5 – ELASTICITY AND ITS APPLICATION
Chapter 6 - SUPPLY, DEMAND, AND GOVERNMENT POLICIES. Questions for Review. 1. An example of a price ceiling is the rent control system in New York City. An example of a price floor is the minimum wage. Many other examples are possible. 2. A shortage of a good arises when there is a binding price ceiling. A surplus of a good arises when there is a binding price floor. 3. When the price of a ... ................
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