Bellringer (Half sheet)Today’s objective: identify direct and indirect effects of price ceilings.

1. What do you get when supply and demand meet?

2. Tell me about a price of a product that’s unfair?3. When would it be okay for the government to

set a price on a certain good or service?

04/15/14

Quick Review

Price Ceiling – In your notes

Price Ceiling – a legal maximum price (limit) that may be charged for a certain good or

service.

Price floor – In your notes

Price floor– a legal minimum price - goods or services may not be sold below this price.

http://www.econedlink.org/interactives/index.php?iid=217&type=student

Video

Example

• Choose a market that interests you• Identify 3 major corporations involved in the market (-5 if missing)• Explain whether the demand is elastic or inelastic (-10 if missing, -5 if not

explained correctly)• Evaluate the effect of a government price ceiling on your market (-5 if

missing)• Find two articles that affect that market’s supply or demand curves (-10 for

no citation)• Cite your sources, use the Economist or your phone, MLA format (-5 for

each missing)• Draw a graph for each article and short explanation of change; explain what

happens to EqP, identify the determinant that changes (PEST=SUPPY, TRIBE = DEMAND) (-2 for each mistake)

• Show the change to secondary market, could be a complement, substitute, or factor of production (-10 if missing)

• Project must be in color and include a few pictures (-10 if missing)• Make either a color poster or pamphlet, or website.

Supply / Demand Project

Example ProjectThe GAS Market

• Quick Trip

• 3 Major Corporations–Circle K – Shell–Chevron

• Inelastic Demand– Consumers need gasoline

almost every day to fill up their cars and drive to work. They are willing to purchase it even if the price increases by 50 cents.

• Govt. Price Ceilings– Placing a government

price maximum on gasoline might cause a shortage over time.

Example ProjectThe GAS Market

Quick Trips enter Tucson gasoline market in 2010 causing an increase in Supply of gasoline across the city. PEST = # of sellers increase; eqP decreases.

The rise of popularity for electric cars decrease the demand for gasoline.TRIBE= Tastes change; eqP of gasoline decreases.

Example ProjectSecondary GAS Market

• Safeway Gas

• 3 Major Corporations–Quick Trip – Texaco–Valero

• Inelastic Demand– Increasing prices of oil

will cause the demand for gasoline to decrease. Citizens may start to use alternative means for transportation like walking or riding a bicycle.

• How to Cite a Magazine in Print in MLA• The magazine is very similar to the newspaper. Cite the

author of the article, the name of the article, name of the magazine, the date published, and the pages referred to.

• Structure:– Last, First M. "Article Title." Magazine Title. Date Month Year

Published: Page(s). Print.

• Examples:– Rothbart, Davy. "How I Caught up with Dad." Men's Health Oct.

2008: 108-13. Print.

*Taken from http://www.easybib.com/reference/guide/mla/website

MLA Format

• How to Cite a Website in MLA

• Structure:– Last name, First name. "Article Title." Website

Title. Publisher of Website, Day Month Year article was published. Web. Day Month Year article was accessed. <URL>.

• Example:– Auel, Erin and Kasper, Matt. "As Demand For Electric Vehicles Steadily

Grows, Tesla Model S Wins 2013 ‘Motor Trend Car Of The Year." Climate Progress, 19, November 2012. Web. 15 April. 2014. http://thinkprogress.org/climate/2012/11/19/1204161/as-demand-for-electric-vehicles-steadily-grows-tesla-model-s-wins-2013-motor-trend-car-of-the-year/

*Taken from http://www.easybib.com/reference/guide/mla/website

MLA Format