Price Regulations and Product Quality a. Price controls prevent markets from adjusting to equilibrium. Quality will adjust to bring about equilibrium. Rent controls 2. The Minimum Wage a. Price Floor i.
Demand increases as average skill level increases.
Demand decreases as quality falls 4. Medical experiments are i. costly ii. Student Vacations a. Loans shift budget line outward i. Student loans require minimum enrollment. Budget line does not intersect vertical axis. Given variability of preferences, anything can happen.