1 / 10

Price Floor and Price Ceiling

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.

melvin-lester
Download Presentation

Price Floor and Price Ceiling

An Image/Link below is provided (as is) to download presentation Download Policy: Content on the Website is provided to you AS IS for your information and personal use and may not be sold / licensed / shared on other websites without getting consent from its author. Content is provided to you AS IS for your information and personal use only. Download presentation by click this link. While downloading, if for some reason you are not able to download a presentation, the publisher may have deleted the file from their server. During download, if you can't get a presentation, the file might be deleted by the publisher.

E N D

Presentation Transcript

  1. Price Floor and Price Ceiling

  2. Motivation • Has 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. • 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 Examine handout 9-1 and do questions 1- 4. Relate the concepts to the charts on floors and ceilings.

  5. 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.

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

  7. Individual Practice • Read articles on Rent Control and Minimum Wage. • Answer questions regarding each of them in relation to price floors and ceilings.

  8. Rent Control

  9. Minimum Wage

More Related