price ceiling
DESCRIPTION
TRANSCRIPT
![Page 1: Price ceiling](https://reader033.vdocument.in/reader033/viewer/2022061221/54bea3d34a795929458b4686/html5/thumbnails/1.jpg)
0
0.25
0.5
0.75
1
1.25
1.5
1.75
2
2.25
2.5
2.75
3
0 100 200 300 400 500 600 700 800 900 1000 1100 1200 1300 1400 15000
0.25
0.5
0.75
1
1.25
1.5
1.75
2
2.25
2.5
2.75
3
0 100 200 300 400 500 600 700 800 900 1000 1100 1200 1300 1400 1500
0
0.25
0.5
0.75
1
1.25
1.5
1.75
2
2.25
2.5
2.75
3
0 100 200 300 400 500 600 700 800 900 1000 1100 1200 1300 1400 1500
0
0.25
0.5
0.75
1
1.25
1.5
1.75
2
2.25
2.5
2.75
3
0 100 200 300 400 500 600 700 800 900 1000 1100 1200 1300 1400 1500
![Page 2: Price ceiling](https://reader033.vdocument.in/reader033/viewer/2022061221/54bea3d34a795929458b4686/html5/thumbnails/2.jpg)
Bellringer
1. Find the equilibrium price of 1 loaf of bread
Price Quantity Supplied
Quantity DemandedPrice
$ 1.00$ 1.75$ 2.25$ 3.00
3007009001500
$ 0.25$ 0.50$ 1.00$ 2.25$ 3.00
1500900600400300
0
0.25
0.5
0.75
1
1.25
1.5
1.75
2
2.25
2.5
2.75
3
0 100 200 300 400 500 600 700 800 900 1000 1100 1200 1300 1400 1500
2. Why might a politician argue this isn’t a fair price for
large families?
![Page 3: Price ceiling](https://reader033.vdocument.in/reader033/viewer/2022061221/54bea3d34a795929458b4686/html5/thumbnails/3.jpg)
Shortage & surplus
0
0.25
0.5
0.75
1
1.25
1.5
1.75
2
2.25
2.5
2.75
3
0 100 200 300 400 500 600 700 800 900 1000 1100 1200 1300 1400 1500
D
SP
Q
![Page 4: Price ceiling](https://reader033.vdocument.in/reader033/viewer/2022061221/54bea3d34a795929458b4686/html5/thumbnails/4.jpg)
Price floorsPrice floors – low – low limit on how low limit on how low a price can goa price can go
Price CeilingPrice Ceiling – – limit on how limit on how high a price can high a price can gogo
Government Solutions!
![Page 5: Price ceiling](https://reader033.vdocument.in/reader033/viewer/2022061221/54bea3d34a795929458b4686/html5/thumbnails/5.jpg)
![Page 6: Price ceiling](https://reader033.vdocument.in/reader033/viewer/2022061221/54bea3d34a795929458b4686/html5/thumbnails/6.jpg)
Price CeilingPrice CeilingDesigned to help Designed to help
consumersconsumers
Illegal to charge Illegal to charge higher than the pricehigher than the price
Example: Rent Example: Rent ControlsControls
Problems?Problems?
QualityQuality
ShortagesShortages
![Page 7: Price ceiling](https://reader033.vdocument.in/reader033/viewer/2022061221/54bea3d34a795929458b4686/html5/thumbnails/7.jpg)
Price CeilingPrice CeilingDesigned to help Designed to help
consumersconsumers
Illegal to charge higher Illegal to charge higher than the pricethan the price
Example: Rent Example: Rent ControlsControls
Problems?Problems?
QualityQuality
ShortagesShortages
Stossel ClipStossel Clip
![Page 8: Price ceiling](https://reader033.vdocument.in/reader033/viewer/2022061221/54bea3d34a795929458b4686/html5/thumbnails/8.jpg)
![Page 9: Price ceiling](https://reader033.vdocument.in/reader033/viewer/2022061221/54bea3d34a795929458b4686/html5/thumbnails/9.jpg)
![Page 10: Price ceiling](https://reader033.vdocument.in/reader033/viewer/2022061221/54bea3d34a795929458b4686/html5/thumbnails/10.jpg)
Price FloorsPrice Floors
Designed to help firmsDesigned to help firms
Illegal to charge lower than Illegal to charge lower than the pricethe price
Example: Farmers during New Example: Farmers during New DealDeal
Problems?Problems?
EfficiencyEfficiency
SurplusesSurpluses
““subsities” – payments from subsities” – payments from government to businesgovernment to busines
![Page 11: Price ceiling](https://reader033.vdocument.in/reader033/viewer/2022061221/54bea3d34a795929458b4686/html5/thumbnails/11.jpg)
Price FloorsPrice Floors
Designed to help firmsDesigned to help firms
Illegal to charge lower Illegal to charge lower than the pricethan the price
Example: Farmers Example: Farmers during New Dealduring New Deal
Problems?Problems?
EfficiencyEfficiency
SurplusesSurpluses
Stossel ClipStossel Clip