Assume that in the market for credit cards there is some elasticity of supply and demand and that the equilibrium money price is 29%. Construct a market for credit cards showing the actual market price. Label initial supply and demand with subscript 1. Analyze the likely effect in the market for credit cards if state governments across the country impose a cap on credit card interest rate at 19%

Survey Of Economics
10th Edition
ISBN:9781337111522
Author:Tucker, Irvin B.
Publisher:Tucker, Irvin B.
Chapter20: Monetary Policy
Section: Chapter Questions
Problem 6SQP
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Assume that in the market for credit cards there is some elasticity of supply and demand and that the equilibrium money price is 29%. Construct a market for credit cards showing the actual market price. Label initial supply and demand with subscript 1. Analyze the likely effect in the market for credit cards if state governments across the country impose a cap on credit card interest rate at 19%

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