Government Intervention: Price Ceilings, Price Floors, and Taxes
摘要
This chapter introduces the readers to price control (price ceilings and price floors) and taxes. After reading this chapter and working on the practice questions, the learners should be able to analyze the effect of a price ceiling and a price floor; discuss the advantages and disadvantages of a minimum wage law; and construct graphs that show the effects of a per-unit tax imposed on consumers or producers.