Presentation on theme: "Price Floor and Price Ceiling Motivation §Has anyone been to a sold out concert recently? Who did you see? What was the ticket price?"— Presentation transcript:
Price Floor and Price Ceiling
Motivation §Has anyone been to a sold out concert recently? Who did you see? What was the ticket price?
Objective § Understand the concepts of price floors and price ceilings. §Be able to explain how milk and concert tickets are also examples of floors and ceilings. §Read and comprehend the examples of minimum wage and rent control.
Basic Price Floors and Price Ceilings §Examine handout 9-1 and do questions §Relate the concepts to the charts on floors and ceilings.
Price Ceiling §a maximum price set by the government (or an agency) below the Equilibrium point. (For example: Concert tickets) §Helps Buyers. §Creates a shortage. §A black market emerges.
Price Floor §a minimum price set by the government (or an agency) above the Equilibrium point. (For example: milk) §Helps Sellers §Creates a Surplus
Individual Practice §Read articles on Rent Control and Minimum Wage. §Answer questions regarding each of them in relation to price floors and ceilings.