Microeconomics (Christopher T.S. Ragan) (z-lib.org)

Figure 5-3 A Price Ceiling and Black-Market Pricing Price Ceilings A price ceiling is the maximum price at which certain goods a ...

Allocative Efficiency Allocative efficiency concerns the quantities of the various products to be produced. When the combination ...

to consumers would rise to If black marketeers buy at the ceiling price of and sell at the black-market price of their profits a ...

Figure 12-3 Marginal Cost and Marginal Value in a Single Market curve shows the marginal value to consumers; the market supply c ...

market-clearing prices. Storekeepers (and some ticket sellers) often respond to excess demand by keeping goods “under the counte ...

Figure 12-4 Allocative Efficiency and the Production Possibilities Boundary Allocative Efficiency and the Production Possibiliti ...

Figure 5-3 illustrates the extreme case, in which all the available supply is sold on a black market. We say this case is extrem ...

Allocative efficiency requires that all goods be produced to the point where the marginal cost to producers equals the marginal ...

equilibrium price, The third objective may also be thwarted, since with an active black market it is likely that much of the pro ...

are productively efficient. The two demand-and-supply diagrams show the competitive markets for wheat and steel. These two diagr ...

5.2 Rent Controls: A Case Study of Price Ceilings For long periods over the past hundred years, rent controls existed in London, ...

Which Market Structures Are Efficient? We now know that for productive efficiency, all firms must be minimizing their costs and ...

continues to be used in many cities, and has recently been expanded in Toronto. The Predicted Effects of Rent Controls Binding r ...

monopolist will operate on its LRAC curve, and will therefore be productively efficient. Since the firm is alone in the industry ...

The unique feature of rent controls, however, as compared with price controls in general, is that they are applied to a highly d ...

competition and monopoly are present in the economy, the more we can expect market prices to exceed marginal cost, and thus the ...

Figure 5-4 The Short-Run and Long-Run Effects of Rent Controls wear out. As a result, the quantity supplied shrinks steadily and ...

Allocative Efficiency and Total Surplus We have now examined allocative efficiency using the concepts of marginal value to consu ...

lower-paying jobs nearby simply to avoid the necessity of moving. Thus, a situation will arise in which existing tenants will ha ...

Figure 12-5 Consumer and Producer Surplus in a Competitive Market market price is and consumers buy units of the product, consum ...