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Module Supply and Demand: Quantity Controls KRUGMAN'S MACROECONOMICS for AP* 9 Margaret Ray and David Anderson.

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Presentation on theme: "Module Supply and Demand: Quantity Controls KRUGMAN'S MACROECONOMICS for AP* 9 Margaret Ray and David Anderson."— Presentation transcript:

1 Module Supply and Demand: Quantity Controls KRUGMAN'S MACROECONOMICS for AP* 9 Margaret Ray and David Anderson

2 What you will learn in this Module : The meaning of quantity controls, another way government intervenes in markets How quantity controls create problems and can make a market inefficient Who benefits and who loses from quantity controls, and why they are used despite their well-known problems

3 Quantity Control - Quota Licenses Controlling Quantities

4 The Anatomy of Quantity Controls

5 Demand Price Supply Price Wedge - Quota Rent

6 The Cost of Quantity Controls Deadweight Loss


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