Presentation on theme: "KRUGMAN'S MACROECONOMICS for AP* 8 Margaret Ray and David Anderson Module Supply and Demand: Price Controls (Ceilings and Floors)"— Presentation transcript:
KRUGMAN'S MACROECONOMICS for AP* 8 Margaret Ray and David Anderson Module Supply and Demand: Price Controls (Ceilings and Floors)
What you will learn in this Module : The meaning of price controls, one way government intervenes in markets How price controls can create problems and make a market inefficient Why economists are often deeply skeptical of attempts to intervene in markets Who benefits and who loses from price controls, and why they are used despite their well-known problems
Unpopular market prices Political pressure Why Governments Control Prices
Legal maximum price Examples Resource prices during WWII Oil Prices in1970s California electricity New York City apartments Price Ceilings
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