Question
A manufacturer and distributor often negotiate a maximum resale price maintenance in response to one of these policies. For 10 points each:
[10m] Name these policies that can create black markets. These policies are represented by a horizontal line below the equilibrium, creating a shortage.
ANSWER: price ceilings [accept price rationing; prompt on ceilings; prompt on price controls; prompt on, but DO NOT REVEAL, rent controls by asking “can you be less specific?”]
[10e] The most common type of price ceiling is implemented to control this quantity, the price a tenant pays to their landlord.
ANSWER: rent [accept rent control]
[10h] Implementing a price ceiling results in an increase in this quantity and deadweight loss. The rule of one-half measures the change in this quantity based on changes in supply.
ANSWER: consumer surplus [prompt on surplus]
<Social Science>
Summary
| 2023 ACF Winter @ Columbia | 11/11/2023 | Y | 3 | 16.67 | 100% | 67% | 0% |
Data
| Columbia A | Yale C | 10 | 10 | 0 | 20 |
| Rutgers A | Princeton A | 10 | 10 | 0 | 20 |
| Yale A | Rutgers B | 0 | 10 | 0 | 10 |