Macroeconomics
If a price floor is set at \$80 in a market where the equilibrium price is \$60, what is the likely outcome?
What is a price ceiling?
What is a potential negative consequence of a high minimum wage set above the equilibrium wage?
What are the potential consequences of setting a minimum wage above the equilibrium wage in the labor market?
How do price ceilings and floors contribute to market inefficiencies? Provide a real-world example.
If a price ceiling is set at \$50 in a market where the equilibrium price is \$70, what is the likely outcome?
What happens to the quantity supplied and quantity demanded when an effective price ceiling is imposed below the equilibrium price?
How do rationing coupons help manage shortages caused by price ceilings?
Why might a government implement rent control as a price ceiling?
What are the ethical and economic implications of black markets resulting from price controls?
