Price Floor and Price Ceiling

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Presentation transcript:

Price Floor and Price Ceiling 4/1/2017 Price Floor and Price Ceiling

4/1/2017 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. 4/1/2017 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 4/1/2017 Basic Price Floors and Price Ceilings Examine handout 9-1 and do questions 1- 4. Relate the concepts to the charts on floors and ceilings.

4/1/2017 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.

4/1/2017 Price Floor a minimum price set by the government (or an agency) above the Equilibrium point. (For example: milk) Helps Sellers Creates a Surplus

4/1/2017

Read articles on Rent Control and Minimum Wage. 4/1/2017 Individual Practice Read articles on Rent Control and Minimum Wage. Answer questions regarding each of them in relation to price floors and ceilings.

4/1/2017 Rent Control

4/1/2017 Minimum Wage

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