1. a) Who benefits from rent ceilings?
b) Who suffers?
c) What are the long-term effects of rent ceilings?
d) How can landlords and tenants cheat on rent ceilings?
e) Do you think the rent ceilings might lead to more discrimination against certain groups?
2. Are there methods other than a minimum wage that could raise the incomes of low-wage workers without reducing employment of minority youngsters?
3. Why do you think organized labor groups, such as unions, are supporters of a higher minimum wage, even though all of their members earn much more than the minimum wage?
4. Of what significance is the elasticity of demand for drugs in the debate about legalization of presently illegal substances?
5. In recent years, about twenty states have passed so-called medical marijuana laws. Typically, these laws permit individuals to lawfully purchase marijuana from licensed stores, providing they have a letter from their doctor recommending its uses. In a number of these states, the price of medical marijuana is observed to be higher than that of the pot sold illegally just down the street. Use the reasoning in this chapter to explain (a) why people would be willing to pay a higher price for the medical marijuana, and (b) why it might be misleading to compare the observed price of the medical variety with the observed price of the illegal weed