a. Normal Goods
a. Income Inelastic
b. Income Elastic
c. Luxuries Versus Necessities
b. Inferior Goods
2. Cross Elasticity of Demand
G. Summary
- 4.1 Price Elasticity of Demand LO 1, 2
- 4.2 Price Elasticity of Supply LO 3
- 4.3 Elasticity Matters for Excise Taxes LO 4
- 4.4 Other Demand Elasticities LO 5, 6
H. Key Concepts
I. Study Exercises - Fill-in-the-Blank
- Review
- Problems
- 5 Price Controls and Market Efficiency
A. Chapter Outline
B. Learning Objectives (LO)
C. 5.1 Government-Controlled Prices - Disequilibrium Prices
- Price Floors
- Price Ceilings
a. Allocating a Product in Excess Demand
b. Black Markets
D. 5.2 Rent Controls: A Case Study of Price Ceilings - The Predicted Effects of Rent Controls