discuss price ceilings and price floors. They are responses by
government to market failures. The text discusses rent control and
minimum wage. Another application is limits often set by states,
called usury laws, that limit the maximum interest rates that can
be charged to borrowers. In some states, like Arkansas, this has
resulted in the elimination of "pay day loans" and has shut down an
industry. Consider the results of this price ceiling.
Are the economic effects worth the price?