Answer to Question 1
Rawls was aware that extensive redistribution of income could decrease the average income, which is the tradeoff captured by the big tradeoff. Thus perfect equality of income might result in everyone having lower income than would otherwise be the case. To overcome this issue, according to John Rawls, the fairest distribution of the economic pie is the one that provides the poorest person the largest income possible. Hence less redistribution will take place than if perfect equality was the goal. As a result, average income will decrease less and the poorest person would be better off.
Answer to Question 2
A price ceiling is the maximum legal price that can be charged. A price floor is the minimum legal price that can be charged. For a price ceiling or a price floor to have an effect, they must make the equilibrium price illegal. So, an effective price ceiling is set below the equilibrium price while an effective price floor is set above the equilibrium price. A price ceiling creates a shortage of the good while a price floor creates a surplus. Both create an inefficient market outcome because the marginal benefit of the last unit consumed no longer equals the marginal cost of the last unit produced.
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