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Price Control
Price Control
Price Control
Price Control
Price Control
Price Control
Price Control
Price Control
Price Control
Price Control
Price Control
Price Control
Price Control
Price Control
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Price Control

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Transcript

  • 1. Presented By Mayank Jain Sem 1, MBA 2010-12 DOMS IIT Roorkee
  • 2.
    • Governmental Impositions on the Prices Charged.
    • Determinant on how High or Low Prices can go.
  • 3.
    • Policymaker believe Market Price Unfair to Buyer or Seller
      • Affordability of Staple Food
      • During Crisis Time
    • An Attempt to alter the Equilibrium
  • 4.
    • Price Ceiling - Max Price that can be Charged for a Good.
    • Price Floor - Min Price that is Required to Pay for a Good
  • 5. Equilibrium Price Ceiling D Quantity Price 3 2 200 4 S 100 D Quantity Price 3 2 200 300 4 S 100 Price Ceiling
  • 6. Equilibrium Price Ceiling D Quantity Price 3 2 200 4 S 100 D Quantity Price 3 2 200 800 4 S 100 Shortage Price Ceiling
  • 7.  
  • 8.
    • Missed opportunities thus Inefficient market economy
    • Inefficiency Introduced
        • Inefficient Allocation to Consumers
        • Wasted Resources
        • Inefficiently Low Quality
        • Black Markets
        • Supply side Pressure
        • Discrimination based on Supplier Bias
  • 9.
    • Price Floor is a minimum price buyer are required to pay for a good.
      • The minimum wage is a legal floor on the wage rate.
  • 10.
    • `
    • Equilibrium
    • Price floor
    D Quantity Price 3 2 200 4 S 100 D Quantity Price 3 2 200 600 4 S 100 Surplus Price Floor
  • 11.
    • Inefficient allocation of sales among Sellers
    • Wasted Resources
  • 12.
    • People Responds to Incentive
    • Market are Usually a Good Way to Organise Economic Activity
    • Government can Sometime Improve Market Outcome
  • 13.
    • Price control more often then Not Hurts Economy and Society if persisted for Long
  • 14. Mayank Jain [email_address]

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