Chapter 10

Applications of Competitive Equilibrium Theory

This chapter explores some applications of the supply-and-demand approach to practical issues of public policy: an urban problem, rent control; a rural problem, agricultural price supports, and supply cycles, with applications to several kinds of markets.

You Need To Know

This chapter can be understood after the student has completed Chapter 9: Competition

Begin the chapter

Contents

  1. Introduction
  2. Rent Control
  3. A Chip Shortage
  4. The Cobweb Cycle
  5. The "Farm Problem"
  6. Chapter Summary
Next Chapter: Government and Efficiency: Public Goods and Externality

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