Price floors are typically accompanied by a standard series of symptoms. What are they?
Following are some of the symptoms associated with price floors: A surplus develops as sellers cannot find enough buyers. Where goods, rather than services, are involved, the surplus creates a problem of disposal. To get around the regulations, sellers may offer discounts in disguised?and often unwanted?forms. Regulations that keep prices artificially high encourage overinvestment in the industry. Even inefficient businesses whose high operating costs would doom them in an unrestricted market can survive beneath the shelter of a generous price floor.
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In the typical bathtub, the flow of water into the tub is controlled by a faucet independently of the quantity of water in the tub
How is the bathtub analogy of the steady state in the Solow model different? How does this difference relate to the phenomenon of convergence?
In a perfectly competitive resource market the labor supply curve facing the single firm is
A) vertical. B) horizontal. C) downward-sloping. D) upward-sloping.