The concepts of price ceiling and price floors and market shortages and surpluses.
Select a country and explore the concepts of price ceiling and price floors and market shortages and surpluses.
Locate a recent article (published within the last year) that discusses either the price ceiling or price floor, and market shortages and surpluses of a good or service from your selected country at a macro level. You can use the Library, newspapers, news stations, or other credible sources to locate an article. Analyze your selected country’s good or service and determine whether it has a market shortage or surplus.
Consider the following for our in-class discussion:
Identify the country and the good or service selected.
Analyze supply and demand curves.
Examine the concepts of price ceilings and price floors.
Explain the causes and predict the effect of changes in demand and supply on the equilibrium price and quantity.
Differentiate between consumer surplus and producer surplus.