价格控制与税.pptVIP

Government Intervention in the Economy Price Control Price ceiling Price floor Taxes Government Intervention in the Economy In a free, unregulated market system, market forces establish equilibrium prices and exchange quantities. While equilibrium conditions may be efficient, it may be true that not everyone is satisfied. Price Controls… Are usually enacted when policymakers believe the market price is unfair to buyers or sellers. Result in government-created price ceilings and floors. Price Ceilings Price Floors Price Ceiling ? A legally established maximum price at which a good can be sold. Price Floor ? A legally established minimum price at which a good can be sold. Price Ceilings Two outcomes are possible when the government imposes a price ceiling: The price ceiling is not binding if set above the equilibrium price. The price ceiling is binding if set below the equilibrium price, leading to a shortage. A Price Ceiling That Is Not Binding... A Price Ceiling That Is Binding... Effects of Price Ceilings A binding price ceiling creates . . . shortages because QD QS. ? Example: Gasoline shortage of the 1970s . . . non-price rationing ? Examples: Long lines Discrimination by sellers Example : Lines at the Gas Pump The Price Ceiling on Gasoline Is Not Binding... The Price Ceiling on Gasoline Is Binding... Example : Rent Control Rent controls are ceilings placed on the rents that landlords may charge their tenants. The goal of rent control policy is to help the poor by making housing more affordable. One economist called rent control “the best way to destroy a city, other than bombing.” Rent Control in the Short Run... Rent Control in the Long Run... Effect of Rent Control Who gains and loses with price ceilings: Benefit - those who get low cost apartments Lose - those who would have apartments under a functioning market but can’t find apartments due to the shortage. Lose - landlords who must accept lower rent. Effect of Re