Suppose that the market for coats can be described as follows:
What are the equilibrium price and quantity of coats?
Suppose the government sets a price ceiling of $80. There will be a of million coats.
This is a modal window.
Beginning of dialog window. Escape will cancel and close the window.
End of dialog window.
This is a modal window. This modal can be closed by pressing the Escape key or activating the close button.
This is a modal window.
Given that the government sets a price ceiling of $80, consumers will be willing to pay $ per coat (i.e., the true price). If people who line up to get a coat value their time at $10 an hour, they will wait in line for hours to obtain a coat.
This is a modal window.
Beginning of dialog window. Escape will cancel and close the window.
End of dialog window.
This is a modal window. This modal can be closed by pressing the Escape key or activating the close button.
This is a modal window.