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result of a price ceiling

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1. Should any government body; local, state, or federal, be involved in setting prices?
Why or Why Not?
Formulate your answer as if you were responding to this question by someone who is not familiar with economics.

2. Put yourself in the position of a wheat farmer in the United States. What type activity would you like to see the Supply Curve take? And the Demand Curve?
Explain your answers with sound economic reasoning.

3. The Federal Reserve is an independent agency of the federal government.
Should the Federal Reserve be placed under the control of either the Congress or the Executive branch?
Explain your answer.

4. What is the result of a price ceiling that is set below the equilibrium price?

5. Name 2 results of price ceilings. Do not mention Shortages or Surpluses.

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Solution Summary

The result of a price ceiling is demonstrated.