1. Chap. 6 Sect. 3 Analyze the effects of price ceilings and price floors.

2. The Gov’t & Price Control
Two ways a gov’t can intervene in the market to control prices – Price Ceilings and Price Floors.
Price Ceiling – a maximum price for a good or service that is set by the gov’t.
Usually set for items that are seen as necessary that might otherwise become too expensive.
Ex. Rent Control in NYC
Costs of Ceilings –
Shortages ,Poor Maintenance
Price Gouging - Price Ceilings
rent controls- price ceiling
Equilibrium

3. The Gov’t & Price Control cont.
Price Floors – a minimum price for a good or service that is set by the gov’t.
Usually set when the gov’t wants to ensure that the sellers get a minimum reward for their efforts. Ex. Min. Wage
Price Floors can lead to a surplus and waste
The U.S. used to set price floors for many agricultural products, and would then buy the surplus from the farms, now it is done through subsidies with less waste.
minimum wage- price floors

4. Minimum Wage and the Labor Market

5. Minimum Wage cont.
Minimum Wage over time
inflation calculator
Minimum Wage Stats
30 Days Minimum Wage