by TheBusinessProfessor | Feb 23, 2025 | Economic Analysis & Monetary Policy
What are Price Controls?Price controls, as the name implies, seeks to regulate or control prices in the economy. They come in the forms of price ceilings and price floors. What is a Price Ceiling?A price ceiling is the maximum allowed under the law to be charged for a...
by TheBusinessProfessor | Feb 23, 2025 | Economic Analysis & Monetary Policy
What is an Economic Surplus of Goods? A excess or surplus of goods in the market arises when producers produce more of a good or service that consumers want or need at a given price. What is an Economic Shortage of Goods?A shortage, in contrast, arises when consumers...
by TheBusinessProfessor | Feb 23, 2025 | Economic Analysis & Monetary Policy
What is Ceteris Paribus?A demand curve or a supply curve is a relationship between two, and only two, variables: quantity on the horizontal axis and price on the vertical axis. The assumption behind a demand curve or a supply curve is that no relevant economic...
by TheBusinessProfessor | Feb 23, 2025 | Economic Analysis & Monetary Policy
What is the Equilibrium Price?Equilibrium price is the common price point where consumer demand (shown in the demand curve) is the same as the quantity produced by producers (producer surplus). What is Equilibrium Quantity?The equilibrium quantity is the quantity of...
by TheBusinessProfessor | Feb 23, 2025 | Economic Analysis & Monetary Policy
What is a Demand Schedule? A demand schedule is a list or table of levels (or quantity) of demand for a good or service at a given price. In summary, it is the amount desired by consumers at a given price. Related Topics Budget Constraint Radner Equilibrium...
