DIRECTIONS: Click on the above video, answer the questions, then send your answers to email@example.com titled
Econ 13.23 – Again: Price Floors and Price Ceilings
42 Homework points!
1. What is a free market?
2. Who has the power and motivation to interfere with the market mechanism?
3. What is a price floor?
4. Where is is set?
5. Who is the price floor meant to protect?
6. What kinds of businesses would warrant such help?
7. What is the result of a price floor?
8. Question: Rather than impose an artificial price on the market resulting in other problems, is there any way to manage the market to get the equilibrium price up to Pf where we want it to be?
9. What is a price ceiling?
10. Who is it meant to protect?
11. What are typical candidates for price ceilings?
12. When consumers are very happy to buy, but producers (gas station owners) are not willing to provide, what occurs?
13. What options does the video offer with regards to demand and getting to equilibrium?
14. What options does the video offer with regards to supply and getting to equilibrium?