Presentation on theme: "Price Floor and Price Ceiling"— Presentation transcript:
1 Price Floor and Price Ceiling 4/1/2017Price Floor and Price Ceiling
2 4/1/2017MotivationHas anyone been to a sold out concert recently? Who did you see? What was the ticket price?
3 Objective Understand the concepts of price floors and price ceilings. 4/1/2017ObjectiveUnderstand 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.
4 Basic Price Floors and Price Ceilings 4/1/2017Basic Price Floors and Price CeilingsExamine handout 9-1 and do questions 1- 4.Relate the concepts to the charts on floors and ceilings.
5 4/1/2017Price Ceilinga 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.
6 4/1/2017Price Floora minimum price set by the government (or an agency) above the Equilibrium point. (For example: milk)Helps SellersCreates a Surplus
8 Read articles on Rent Control and Minimum Wage. 4/1/2017Individual PracticeRead articles on Rent Control and Minimum Wage.Answer questions regarding each of them in relation to price floors and ceilings.