Important Concepts from Chapter 6:
The San Francisco Housing Market
Long Run Supply
Rent Control (price ceiling)
Search costs
Minimum Wage (price floor)
Unskilled Workers
Taxes
Four cases where buyers and sellers pay all the tax
Tax Model
Market for illegal goods
Subsidies
Chapter Handout
Sample Test Questions
1. A Rent Ceiling
2. The Inefficiency of a Rent Ceiling
3. Minimum Wage and Unemployment
4. The Inefficiency of a Minimum Wage
5. Taxes and Efficiency
6. Markets for an Illegal Good