Price Ceilings: Lines & Search Costs | Microeconomics Videos
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mru.org
Price Ceilings: Lines & Search Costs | Microeconomics Videos
We explore two unintended consequences of price ceilings: long lines and search costs. When price ceilings were imposed on gasoline, people could not compete for gas by bidding up the price. Instead, the only way to compete was to wait in line, which was more wasteful. We calculate the value of the time wasted in line.
Dec 10, 2014
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