1. Price Controls Practice Activity
1. Graph the Supply and Demand Curves for baby formula (8 oz bottles)
2. When the market is left alone, what is the equilibrium price?
3. The voters of Arizona voted in November to set a price ceiling of $5/bottle, how many bottles will producers supply?
4. This situation has created a (surplus or shortage) of ____ million baby food bottles (circle the correct word also)
5. How have the families of Arizona been harmed by this law designed to help them? (on back)
6. What do you think the government should do to help the families after the price ceiling? (on back)
7. What would happen if the government lowered the price of gasoline to $0.25/gal.? (on back)
Price Controls Practice Activity
1. Graph the Supply and Demand Curves for baby formula (8 oz bottles)
2. When the market is left alone, what is the equilibrium price?
3. The voters of Arizona voted in November to set a price ceiling of $5/bottle, how many bottles will producers supply?
4. This situation has created a (surplus or shortage) of ____ million bottles (circle the correct word also)
5. How have the families of Arizona been harmed by this law designed to help them? (on back)
6. What do you think the government should do to help the families after the price ceiling? (on back)
7. What would happen if the government lowered the price of gasoline to $0.25/gal? (on back)
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Bottles
Supplied
(in
millions)
Price
per
Bottle
($)
Bottles
Demanded
(in
millions)
Price
per
Bottle
($)
Price
per Bottle
($)
Formula
bottles (in
millions)
Bottles
Supplied
(in
millions)
Price
per
Bottle
($)
Bottles
Demanded
(in
millions)
Price
per
Bottle
($)
Price
per
Bottle
($)
Formula
bottles (in
millions)
Name _____________________
Name _____________________