Frederick MacMillan innovated a type of this economic construct for reselling Alfred Marshall’s Principles of Economics, although that was later made illegal in the Dr. Miles case. Per the Shapiro-Stiglitz model, firms create one of these constructs in the labor market by paying workers a wage based on efficiency to prevent shirking. India’s agricultural MSPs are an example of these constructs, which transfer (*) consumer surplus to producer surplus but generate deadweight loss. On a graph of supply and demand, a binding one of these constructs is represented as a horizontal line above the equilibrium point, such as the minimum wage in a graph of labor. For 10 points, name these artificial minimum values for the cost of purchasing something. ■END■
ANSWER: price floors [accept price supports; accept resale price maintenance or RPM; accept vertical price fixing; prompt on floors or supports; prompt on vertical restraints with “What economic construct as a vertical restraint?”; do not accept or prompt on “price(s)”]
<Benjamin McAvoy-Bickford, Social Science>
= Average correct buzz position