1. Price Ceilings/Floors Minimum Wage
Chapter 6
Price Ceilings/Floors
Minimum Wage

2. Warm-Up
Complete warm-up sheet from my desk called “Seeking Equilibrium; Supply and Demand” #1-4 Make sure to scale your graph carefully.
Once you’re done take out your chapter 6 Section 1 packet to review as a class. If you turned it in last class it is on my desk or if you were absent make sure to pick one up!

3. Price Ceilings
Government interferes to keep some prices from going too high
Price ceiling—legal maximum price a seller may charge for a product
— set below the equilibrium price, so shortage results

4. EXAMPLE: Football Tickets and Price Ceilings
College sells 30,000 football tickets at $15
— 60,000 fans want tickets
College could resolve shortage by raising price to reach equilibrium
College wants to keep price affordable for students
On game day, some people sell tickets for $50 or more on “black market”

5. Rent Control as a Price Ceiling
In the past, many cities passed rent control laws to keep housing affordable for lower income families. These laws control when rent can be raised and by how much, no matter what is going on with the market.
Rent control can have unexpected consequences.

6. Rent Control Consequences
Without the possibility of raising rent to match the market, there is no incentive to increase the supply of rental housing, and a shortage develops.
Also, landlords are reluctant to increase their costs by investing money in property maintenance, so housing conditions often deteriorate.

7. Price Floors
Government intervenes to increase income to certain producers
Price floor—legal minimum price buyers may pay for product
Various programs protect agricultural products
— encourage farmers to produce abundant supply of food
(Examples: corn and milk, wheat)
What are the effects of such farm support programs? The intention is to boost and stabilize farm incomes.

8. EXAMPLE: Minimum Wage as a Price Floor
Minimum wage—least amount employer may pay for one hour of work
— set by government
If set above equilibrium price for job, employers may employ fewer workers
— unemployment increases

9. Minimum Wage Activity
Minimum wage was a critical talking point in the 2016 elections. Some candidates are proposing a hike in minimum wage. Minimum wage is about $ /hr. and about $5-6/hr. for tipped employees.
What do you believe we should do about minimum wage? Should it stay the same, increase to $10/hour, or maybe $15/hour?

10. Minimum Wage Activity
Go on the computers and read the following resources on the minimum wage debate.
wage/
minimum-wage/

11. Minimum Wage Activity
Complete the following assignment: to
Write an essay explaining your position on the minimum wage issue. Your essay should be at least 4 paragraphs (5-6 sentences each) using as much strong evidence as possible to support your position. Make sure to cite your sources!
Introduction of the issue
First reason, with evidence/quotes to back your position.
Second reason, with evidence/quotes to back your position.
Conclusion

12. Warm-Up
Grab a warm-up sheet called “Seeking Equilibrium: Supply and Demand Together” and complete # 1-4.
Also, pick up your fiscal and monetary policy assignment to review as a class.

13. Taxes Do you believe the average taxpayer pays too much in taxes?
What do you believe government should provide for the people?
Should it provide roads, national defense, and education only?
What about health care, scholarships for college, and food for people with low income?

14. Taxes Assignment
Each group will cover 1-2 different types of taxes. You will make a brief power point presentation and teach the class about your assigned tax (each group member must participate). Chapter 14 in your textbook will help you. final product to my at
Your presentation should include the following for each tax:
-the definition/explanation
-an example of how it works
-why it is important/what does the tax go to
-create a multiple choice quiz question based off each tax to test the class

15. Exit Slip
After you have read the article, answer questions 1-4 and write a summary of what you’ve read on a separate sheet of paper.  
10 points total ( 4 points for MC and 6 for writing---
-topic sentence- 1pt.
-concluding sentence-2pt.
-3 sentences of textual evidence 3pts.