price ceilings thurs04172014
TRANSCRIPT
Bellringer (Half sheet)Today’s objective: identify direct and indirect effects of price ceilings.
1. What do you get when supply and demand meet?
2. Tell me about a price of a product that’s unfair?3. When would it be okay for the government to
set a price on a certain good or service?
04/15/14
Quick Review
Price Ceiling – In your notes
Price Ceiling – a legal maximum price (limit) that may be charged for a certain good or
service.
Price floor – In your notes
Price floor– a legal minimum price - goods or services may not be sold below this price.
http://www.econedlink.org/interactives/index.php?iid=217&type=student
Video
Example
• Choose a market that interests you• Identify 3 major corporations involved in the market (-5 if missing)• Explain whether the demand is elastic or inelastic (-10 if missing, -5 if not
explained correctly)• Evaluate the effect of a government price ceiling on your market (-5 if
missing)• Find two articles that affect that market’s supply or demand curves (-10 for
no citation)• Cite your sources, use the Economist or your phone, MLA format (-5 for
each missing)• Draw a graph for each article and short explanation of change; explain what
happens to EqP, identify the determinant that changes (PEST=SUPPY, TRIBE = DEMAND) (-2 for each mistake)
• Show the change to secondary market, could be a complement, substitute, or factor of production (-10 if missing)
• Project must be in color and include a few pictures (-10 if missing)• Make either a color poster or pamphlet, or website.
Supply / Demand Project
Example ProjectThe GAS Market
• Quick Trip
• 3 Major Corporations–Circle K – Shell–Chevron
• Inelastic Demand– Consumers need gasoline
almost every day to fill up their cars and drive to work. They are willing to purchase it even if the price increases by 50 cents.
• Govt. Price Ceilings– Placing a government
price maximum on gasoline might cause a shortage over time.
Example ProjectThe GAS Market
Quick Trips enter Tucson gasoline market in 2010 causing an increase in Supply of gasoline across the city. PEST = # of sellers increase; eqP decreases.
The rise of popularity for electric cars decrease the demand for gasoline.TRIBE= Tastes change; eqP of gasoline decreases.
Example ProjectSecondary GAS Market
• Safeway Gas
• 3 Major Corporations–Quick Trip – Texaco–Valero
• Inelastic Demand– Increasing prices of oil
will cause the demand for gasoline to decrease. Citizens may start to use alternative means for transportation like walking or riding a bicycle.
• How to Cite a Magazine in Print in MLA• The magazine is very similar to the newspaper. Cite the
author of the article, the name of the article, name of the magazine, the date published, and the pages referred to.
• Structure:– Last, First M. "Article Title." Magazine Title. Date Month Year
Published: Page(s). Print.
• Examples:– Rothbart, Davy. "How I Caught up with Dad." Men's Health Oct.
2008: 108-13. Print.
*Taken from http://www.easybib.com/reference/guide/mla/website
MLA Format
• How to Cite a Website in MLA
• Structure:– Last name, First name. "Article Title." Website
Title. Publisher of Website, Day Month Year article was published. Web. Day Month Year article was accessed. <URL>.
• Example:– Auel, Erin and Kasper, Matt. "As Demand For Electric Vehicles Steadily
Grows, Tesla Model S Wins 2013 ‘Motor Trend Car Of The Year." Climate Progress, 19, November 2012. Web. 15 April. 2014. http://thinkprogress.org/climate/2012/11/19/1204161/as-demand-for-electric-vehicles-steadily-grows-tesla-model-s-wins-2013-motor-trend-car-of-the-year/
*Taken from http://www.easybib.com/reference/guide/mla/website
MLA Format