What is an example of a price ceiling and a price floor. Provide an example which can apply to the Market

The ticket price for a play at a Broadway theater is $160, and the theater is full every night. The theater owner, in consultation with a local non-profit arts group, wants to make attending the play more affordable, to open up the theater experience to patrons with more limited budgets. The owner decides to lower the ticket price to $50. Sketch a supply-anddemand graph that represents the market for these play tickets under this price-ceiling policy. Briefly explain why this market is not in equilibrium when the price ceiling is in effect. On your graph, clearly identify the size of the shortage or surplus this market will experience.

In Camarillo, if the equilibrium price of cooking oil is $5.90 per pound, and if the government adopts a price floor for cooking oil at $6.15 per pound, what will happen?

Which of the following is true about price gouging laws? Selected answer will be automatically saved. For keyboard navigation, press up/down arrow keys to select an answer. a b C Question 5 d Price gouging laws are an example of binding price floor. Price gouging laws result in a surplus of goods in states after major weather events. Price gouging laws reduce the quantity supplied compared to an unrestricted market. Price gouging laws are only binding when they are above the equilibrium price. □