6How would a price ceiling on these tickets affect your wallet? The Good-PCHow would a price ceiling on these tickets affect your wallet?
7The GoodSome cities like New York, have rent controls. This is an example of a price ceiling.
8The Bad-PCBecause of the difference in Quantity supplied and Quantity demanded, price ceilings create shortages.
9ShortageShortage: a situation where the quantity demanded > the quantity supplied at a given price
10Price FloorThe LOWEST legal price that can be paid for a good or serviceEX: Minimum wage
11The Good-PFMany people fought for minimum wage so that workers earn a fair amount.
12The Bad-PFPrice Floors create surpluses, leaving many people without a job.
13SurplusSurplus: a situation in which the quantity supplied > the quantity demanded at a given priceResult: Suppliers have extra goods and services.
14Think-Pair-ShareOne common way to achieve social goals is to have the government set prices at “socially desirable” levels. When this happens, prices are not allowed to adjust to their equilibrium levels, and the price system cannot convey accurate information to other buyers and sellers in the market.What DoesThis Mean and What is the problem with this?Use Price Floors and Price Ceilings to justify your answer!