Explain what Effective Price floor is (above the equilibrium price) and efficiency. Illustrate by giving examples. Explain what Effective Price…

Explain what Effective Price floor is (above the equilibrium price) and efficiency. Illustrate by giving examples.

Explain what Effective Price ceiling is (below the equilibrium price) and efficiency. Illustrate by giving examples.

Explain what Non-binding price floor is. Illustrate by giving examples.

Explain what Non-binding price ceiling is. Illustrate by giving examples.

In perfectly competitive markets, what is the most efficient rationing mechanism? Why?

How do taxes on sellers affect market outcomes?

How do taxes on buyers affect market outcomes?

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