Maximum And Minimum Prices In Perfect Competition PDF
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This document discusses maximum and minimum prices in perfect competition. It explains the definitions of maximum and minimum prices and provides examples of situations where governments might impose these controls to protect consumer purchasing power. It also analyzes the effects of price ceilings, illustrating how they create shortages when prices are set below market equilibrium. This document will be useful for students who are studying microeconomics.
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Blz193 – Maximum- en minimumprijs bij volkomen concurrentie 1 https://cumulus.co/economie/begrip/maximumprijs https://www.reviewecon.com/price-controls Maximumprijs Definitie: De maximumprijs is de maximale prijs die voor goederen of diensten mag worden betaal...
Blz193 – Maximum- en minimumprijs bij volkomen concurrentie 1 https://cumulus.co/economie/begrip/maximumprijs https://www.reviewecon.com/price-controls Maximumprijs Definitie: De maximumprijs is de maximale prijs die voor goederen of diensten mag worden betaald. Extra uitleg Als de marktprijs te hoog is, kan de overheid maximumprijzen instellen ter bescherming van de koopkracht van de consument. Voorbeelden van markten waar de overheid maximumprijzen instelt, zijn de markt van sociale huurwoningen en de markt van medicijnen. De overheid kan hiertoe besluiten als het product noodzakelijk is en toegankelijk moet zijn voor iedereen. Naast een maximumprijs, kan de overheid ook een minimumprijs instellen: Wat gebeurt er door het instellen van een maximumprijs? Door de lagere prijs, willen consumenten meer kopen en producenten minder produceren. Er ontstaat een vraagoverschot. Het vraagoverschot kan leiden tot bijvoorbeeld wachtlijsten (het beschikbare aanbod moet namelijk op één of andere manier verdeeld worden). Door het instellen van een maximumprijs, verandert het consumenten- en producentensurplus. Het surplus na overheidsingrijpen ziet er als volgt uit: Blz193 – Maximum- en minimumprijs bij volkomen concurrentie 2 https://cumulus.co/economie/begrip/maximumprijs https://www.reviewecon.com/price-controls Bekijk zeker de uitleg voor de MINIMUMPRIJS How do price controls impact markets? Updated 3/22/2024 Jacob Reed Below is a review of how price controls prevent a market from reaching equilibrium and create deadweight loss. If you would like to get some practice with these concepts, head over to the microeconomics important points, prices, and quantities game or the microeconomics graph shading practice. When a market is at equilibrium, it is allocatively efficient; there is no deadweight loss and economic surplus (consumer surplus + producer surplus) is maximized. Blz193 – Maximum- en minimumprijs bij volkomen concurrentie 3 https://cumulus.co/economie/begrip/maximumprijs https://www.reviewecon.com/price-controls Sometimes the government may impose price controls on a product to help alleviate a social problem; like prevent price gouging with price ceilings or help farmers with price floors. But there will be a loss of market efficiency and deadweight loss will replace some economic surplus. How does a price ceiling impact a competitive market? Maximumprijs A price ceiling is a maximum price set by the government that can be charged for a product. If the government imposes an effective price ceiling (one that is below the market equilibrium price), the market cannot reach equilibrium. At the artificially low price, the quantity supplied will be less than the quantity demanded. The difference between the two is a shortage. The Quantity supplied is all that gets sold with an effective price ceiling (the lower of the two quantities), because a firm cannot sell more than it is willing to make at this artificially low price. Since price cannot legally rise due to the price ceiling, the shortage will remain. This will create deadweight loss and the market will no longer be allocatively efficient. *Note: if a price ceiling is placed above equilibrium, it is not effective (nor binding) so the market price will move toward equilibrium, and there will be no deadweight loss. An effective price ceiling must be below the equilibirum price. Minimumprijs How does a price floor impact a competitive market? A price floor is a minimum price set by the government that can be charged for a product. If the government imposes an effective price floor (one that is above the market equilibrium price) the market cannot reach equilibrium. At the artificially high price, the quantity demanded will be less than the quantity supplied. The difference between the two is a surplus. The quantity demanded is all that gets sold with an effective price floor (the lower of the two quantities), because a firm cannot sell more that consumers are willing to buy at this artificially high price. Since price cannot legally fall, Blz193 – Maximum- en minimumprijs bij volkomen concurrentie 4 https://cumulus.co/economie/begrip/maximumprijs https://www.reviewecon.com/price-controls the surplus will remain. This will create deadweight loss and the market will no longer be allocatively efficient. *Note: if a price floor is placed below equilibrium, it is not effective (or binding) so the market price will move toward equilibrium, and there will be no deadweight loss. An effective price floor must be above the equilibirum price. Blz193 – Maximum- en minimumprijs bij volkomen concurrentie 5 https://cumulus.co/economie/begrip/maximumprijs https://www.reviewecon.com/price-controls Dus samengevat : Normale situatie zonder overheidsingrijpen bij volkomen concurrentie: Maximumprijs ingesteld door de overheid bij volkomen concurrentie: Blz193 – Maximum- en minimumprijs bij volkomen concurrentie 6 https://cumulus.co/economie/begrip/maximumprijs https://www.reviewecon.com/price-controls Minimumprijs ingesteld door de overheid bij volkomen concurrentie:
