AP Micro 6 by Savannah Julius https://padlet.com/8juliuss/apmicro6 Supply, Demand, and Government Policies en-us 2017-11-03 14:17:32 UTC 2017-11-03 15:55:37 UTC hello@padlet.com https://maxcdn.icons8.com/Share/icon/color/Finance//tax1600.png Quizlet 8juliuss https://padlet.com/8juliuss/apmicro6/wish/203302491 https://quizlet.com/_3z7htb]]> 2017-11-03 14:20:09 UTC https://padlet.com/8juliuss/apmicro6/wish/203302491 Frequent Errors 8juliuss https://padlet.com/8juliuss/apmicro6/wish/203302620 https://drive.google.com/open?id=1F7XS5vB4LSDwh6G5uePEDhIWY0ZkYmHp-5HsZjkPgnc]]> 2017-11-03 14:20:22 UTC https://padlet.com/8juliuss/apmicro6/wish/203302620 DEFINE 8juliuss https://padlet.com/8juliuss/apmicro6/wish/203303075 legal max
effective = binding if BELOW equilibrium
- creates a shortage]]> 2017-11-03 14:21:06 UTC https://padlet.com/8juliuss/apmicro6/wish/203303075 price ceilings are non-binding if placed above equilibrium 8juliuss https://padlet.com/8juliuss/apmicro6/wish/203304163 equilibrium can still legally be obtained]]> 2017-11-03 14:22:57 UTC https://padlet.com/8juliuss/apmicro6/wish/203304163 Gas 8juliuss https://padlet.com/8juliuss/apmicro6/wish/203304329 increase on price of crude oil (input to gas) causes supply curve to shift left
--> non-binding price ceiling now becomes binding since equilibrium shifted ABOVE equilibrium and price ceiling is BELOW equilibrium

created a shortage]]> 2017-11-03 14:23:12 UTC https://padlet.com/8juliuss/apmicro6/wish/203304329 total expenditure of consumer with a shortage 8juliuss https://padlet.com/8juliuss/apmicro6/wish/203305286 quantity the consumers are able to purchase times the price at which the price ceiling is at]]> 2017-11-03 14:24:54 UTC https://padlet.com/8juliuss/apmicro6/wish/203305286 rent control - definition 8juliuss https://padlet.com/8juliuss/apmicro6/wish/203305569 government regulation on amounts charged for rented housing]]> 2017-11-03 14:25:28 UTC https://padlet.com/8juliuss/apmicro6/wish/203305569 rent control - short run 8juliuss https://padlet.com/8juliuss/apmicro6/wish/203305898 supply and demand are inelastic in the short run... SUPPLY IS PERFECTLY INELASTIC IN SHORT RUN (vertical graph)

small shortage created with price ceiling falling below equilibrium]]> 2017-11-03 14:26:05 UTC https://padlet.com/8juliuss/apmicro6/wish/203305898 rent control - long run 8juliuss https://padlet.com/8juliuss/apmicro6/wish/203306787 supply and demand are elastic in the long run (gradual slopes for each curve)

shortage gets larger as curves become more elastic]]> 2017-11-03 14:27:28 UTC https://padlet.com/8juliuss/apmicro6/wish/203306787 DEFINE 8juliuss https://padlet.com/8juliuss/apmicro6/wish/203307652 legal min
effective = binding if ABOVE equilibrium 
- creates surplus]]> 2017-11-03 14:29:03 UTC https://padlet.com/8juliuss/apmicro6/wish/203307652 price floors are non-binding if placed below equilibrium 8juliuss https://padlet.com/8juliuss/apmicro6/wish/203308279 equilibrium can still legally be obtained]]> 2017-11-03 14:30:06 UTC https://padlet.com/8juliuss/apmicro6/wish/203308279 Minimum Wage 8juliuss https://padlet.com/8juliuss/apmicro6/wish/203308611 increase in minimum wage (price of labor) causes labor surplus

- labor surplus = unemployment]]> 2017-11-03 14:30:43 UTC https://padlet.com/8juliuss/apmicro6/wish/203308611 total wages for workers with surplus of labor 8juliuss https://padlet.com/8juliuss/apmicro6/wish/203309676 number of people actually working times the wage at which the price floor is at]]> 2017-11-03 14:32:41 UTC https://padlet.com/8juliuss/apmicro6/wish/203309676 raised incomes but less people working 8juliuss https://padlet.com/8juliuss/apmicro6/wish/203310355 2017-11-03 14:33:55 UTC https://padlet.com/8juliuss/apmicro6/wish/203310355 rent may be affordable but housing would be of lower quality 8juliuss https://padlet.com/8juliuss/apmicro6/wish/203310589 2017-11-03 14:34:22 UTC https://padlet.com/8juliuss/apmicro6/wish/203310589 tax always reduces quantity no matter who it is imposed on 8juliuss https://padlet.com/8juliuss/apmicro6/wish/203310795 2017-11-03 14:34:46 UTC https://padlet.com/8juliuss/apmicro6/wish/203310795 tax on suppliers 8juliuss https://padlet.com/8juliuss/apmicro6/wish/203310827 shift supply curve left/up]]> 2017-11-03 14:34:50 UTC https://padlet.com/8juliuss/apmicro6/wish/203310827 tax on buyers 8juliuss https://padlet.com/8juliuss/apmicro6/wish/203310933 shift demand curve left/down]]> 2017-11-03 14:35:02 UTC https://padlet.com/8juliuss/apmicro6/wish/203310933 tax box = total amount of money going to government as tax 8juliuss https://padlet.com/8juliuss/apmicro6/wish/203311268 money suppliers receive per unit is within tax box

revenue suppliers receive =
 (P x Q) - tax]]> 2017-11-03 14:35:44 UTC https://padlet.com/8juliuss/apmicro6/wish/203311268 tax drives a wedge between buyers and sellers 8juliuss https://padlet.com/8juliuss/apmicro6/wish/203352460 the tax is a burdened shared by the buyer and sellers

if equal elasticities = tax burden is same for supply and demand

if one curve more inelastic than the other = more inelastic curve carries bigger burden of tax]]> 2017-11-03 15:51:04 UTC https://padlet.com/8juliuss/apmicro6/wish/203352460 tax things that are inelastic to make the most revenue 8juliuss https://padlet.com/8juliuss/apmicro6/wish/203353085 gas

taxing luxury items on yachts hurts sellers more than buyers]]> 2017-11-03 15:52:22 UTC https://padlet.com/8juliuss/apmicro6/wish/203353085 per unit tax 8juliuss https://padlet.com/8juliuss/apmicro6/wish/203354504 price buyers pay - price sellers receive]]> 2017-11-03 15:55:05 UTC https://padlet.com/8juliuss/apmicro6/wish/203354504 government tax revenue 8juliuss https://padlet.com/8juliuss/apmicro6/wish/203354724 per unit tax x quantity]]> 2017-11-03 15:55:26 UTC https://padlet.com/8juliuss/apmicro6/wish/203354724