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7.9: Outcome- Price Ceilings

Last updated

Aug 7, 2020
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- 7.8: Why It Matters- Government Action
- 7.10: Reading- Price Ceilings

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What you’ll learn to do: analyze the consequences of the government setting a binding price ceiling

In this outcome, we will learn what happens when prices are held below a certain level. Governments typically set a price ceiling to protect consumers by making necessary products affordable, but in this section you’ll see how this sometimes backfires by creating a market shortage or other unintended consequences.

The specific things you’ll learn to do in this section include:

Identify the market’s equilibrium price and quantity under a price ceiling
Compute and graph the market shortage resulting from a price ceiling

LEARNING ACTIVITIES

The learning activities for this section include:

Reading: Price Ceilings
Self Check: Price Ceilings

Take time to review and reflect on each of these activities in order to improve your performance on the assessment for this section.

Authored by: Steven Greenlaw and Lumen Learning. License: CC BY: Attribution

What you’ll learn to do: analyze the consequences of the government setting a binding price ceiling

LEARNING ACTIVITIES

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