1
Q
Price ceiling
A
Legal maximum on the price a good can be sold at. Must be below equilibrium. Creates shortage
2
Q
Price floor
A
Legal minimum on the price a good can be sold at. Must be above equilibrium. Creates surplus
3
Q
Tax incidence
A
How taxes are distributed among the people who make up the economy
4
Q
Binding constraint
A
If the equilibrium price is above the price ceiling, the price ceiling is a binding constraint
ECON 103
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