Bài giảng Economics of Social Issues - Chapter 3 Government Control of Prices in Mixed Systems: What Are the Actual Outcomes?

Chapter 3Government Control of Prices in Mixed Systems: What Are the Actual Outcomes?Copyright © 2010 by the McGraw-Hill Companies, Inc. All rights reserved.McGraw-Hill/Irwin3-2Price ControlsPrice CeilingsPrice Floors3-3SSDDABRent ControlRent per unit $Quantity (thousands of units per year)500400810116003-4SSRent ControlRent per unit $Quantity (thousands of units per year)5001011DD600800S1S112.552513D1D1Minimum Wages -Market Demand for LaborWage rate ($)DD4.003.503.002.502.001.501.00 .501 2 3 4 5 6 7 8 9 10 11 12 13 14 15 (Quantity (thousands of hours per week)3-5The Demand for Labor by One Employer(1)(2)(3)(4)(5)Units of LaborTotal ProductionMarginal ProductMarginal RevenueMarginal Revenue Product MRP = (3) x (4)00155$.50$2.5022520$.5010.0035025$.5012.5047020$.5010.0058010$.505.006855$.502.507861$.50.503-63-7The Demand for Labor by One EmployerQuantity of Labor12345672.505.0010.0012.50.503-8Market Supply of LaborWage rate ($)SSSubstitution EffectIncome Effect4.003.503.002.502.001.501.00 .501 2 3 4 5 6 7 8 9 10 11 12 13 14 15 Quantity (thousands of  hours per week)3-9Effects of the Minimum Wage Quantity (thousands of hours per week)Wage rate ($)DDSS95.006.008.59.253-10Alternative Analysis of the Minimum WageQuantity (thousands of hours per week)Wage rate ($)DDSS95.006.00