29/10/15
Lesson 4: Minimum Price Controls
Learning Objective: I can explain the purpose of a minimum price control.
DA: Is the implementation of a price control a short or long term solution, explain.
DA: Is the implementation of a price control a short or long term solution, explain.
Minimum Price Controls- Minimum price is set above the equilibrium price. Often referred to as floor prices, since the price is not able to go below "the floor". Applied for two reasons:
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Minimum price with government intervention:
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Activity: SL/HL
Activity: HL