What are the side effects of price ceilings? How might price ceilings affect the supply of goods and services that are subject to the price ceilings? Do you agree or disagree with price ceilings? Why or why not?  Do you agree or disagree with laws against price gouging? Why or why not?

What is the difference between a price ceiling and a price floor? Compared to the competitive equilibrium price, where must price ceilings and price floors be set to have an impact on the market.

What are some pros and cons for price ceilings and price floors? And how can these impact ones life?

Why would firms raise the price if there is a market shortage, and why would some consumers pay that higher price. At what point would firms stop raising the price?

Below, you are provided with the demand and supply schedules for jars of peanut butter. You will use this information to analyze the effect of a price ceiling on the price of a jar of peanut butter, and to identify whether the price ceiling leads to a shortage or a surplus of peanut butter.   Price      Jars of Peanut Butter Demanded     Jars of Peanut Butter Supplied $2.00                               2,500                                           1,000                          $2.50                                   2,250                                          1,250                                        $3.00                                   2,000                                          1,500                     $3.50                                1,750                                        1,750      $4.00                              1,500                                         2,000      Part 10 : Complete the statement below.  When a price ceiling is imposed…

Suppose that the government establishes a price ceiling of $3.70 for wheat. What might prompt the government to establish this price ceiling?

Suppose the government forces the price to be below the equilibrium.  Is this called a price floor or a price ceiling? Explain why the government might do this and the likely economic impact of the price floor or ceiling.   Then, explain how market forces will attempt to move the market price to equilibrium.

Suppose the government forces the price to be above the equilibrium.  Is this called a price floor or a price ceiling?  Explain why the government might do this and the likely economic impact of the price floor or ceiling.  Then, explain how market forces will attempt to move the market price to equilibrium.

Please explain using demand and supply graphs to determine equilibrium price and quantity, or surplus and shortages