A production quota is inefficient and unfair.

Explain how a production quota works, and why it brings a higher price and is inefficient and unfair.

7.3 Key Terms MyEconLab Key Terms Quiz Black market Minimum wage law Price cap Price ceiling Price floor Production quota Rent ceiling Search activity

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Chapter Checkpoint Click here to open your MyEconLab Study Plan and work these interactive problems online.

Table 1 Study Plan Problems and Applications Table 1 shows the demand and supply schedules for on-campus housing. Use Table 1 to work Problems 1 to 3 .

Rent (dollars per month)

Quantity demanded Quantity supplied

(rooms)

500 2,500 2,000 550 2,250 2,000 600 2,000 2,000 650 1,750 2,000 700 1,500 2,000 750 1,250 2,000

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