1. Basic Economic Concepts
Price Controls

2. Goals
Identify shifts in supply and demand due to a natural disaster like Irma.
Identify and correctly label a supply and demand graph illustrating a shortage or a surplus.
Explain the two primary methods the government can control price and how that impacts a market.

3. Hurricane Irma

4. Shortage Surplus I. Price Controls
Quantity demanded is higher than quantity supplied
Excess Demand
Surplus
Quantity supplied is higher than quantity demanded
Excess Supply

5. I. Price Controls Price Ceilings Price Floors
Maximum price set by the government for a product.
Ex. Rent Control
Price Floors
Minimum price set by the government for a product.
Ex. Minimum Wage