Principles of Microeconomics

Fred M. Gottheil

Chapter 6 PRICE CEILINGS AND PRICE FLOORS - all with Video Answers

Educators

Chapter Questions

Problem 1

Low income families want community colleges to impose a tuition price ceiling. This way, more people get a college education. Do you agree? What economic analysis can you offer to make your case?

Md.Daniyal Arshad

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Problem 2

When the rains ended, most of the season's crops were destroyed. A government economic adviser suggests imposing a price ceiling on food. Her husband thinks a price floor is better. Who's right? Why?

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05:34

The reason farmers have not done as well as the nonfarm population is because:
a. The government has interfered in the agricultural market.
b. The character of demand and supply in the farm goods market works against the farmer; government interference is not the problem.
Discuss the merit or lack of merit in each argument.

Puneet Prajapati

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Problem 4

Paradoxically, farmers' remarkable success as producers undermines their ability to achieve financial success. Discuss.

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03:27

Problem 5

If the government decides not to interfere in the farm economy, who gains? Who loses?

Ansh Varma

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00:39

Problem 6

What is parity pricing? How does it work? What is the rationale for using such a mechanism in the agricultural market?

Erwin Antoni

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01:42

Problem 7

How do you view minimum wage laws? (A wage is the "price" of labor.) Do minimum wages represent price floors or price ceilings? Can you make a case for them? A case against them?

Kaylee Mcclellan

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00:50

Problem 8

What are usury laws? Why do you think they have been so universally applied?

Madysn Cardinal

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01:52

Problem 9

If a price ceiling were imposed in a fish market whose equilibrium price was substantially above the ceiling, what effect would the price ceiling on fish have on the demand for meat and fowl?