AP Economics – 9/27/2018

I.  Bellwork

A.  Create a graph for housing at equilibrium.  Show graphically what would happen if the government instituted a price ceiling.  Explain the impact on Price, Qd, and Qs..

B.   Create a graph for milk at equilibrium.  Show graphically what would happen if the government instituted a price floor.  Explain the impact on Price, Qd, and Qs..

II.  Objective

• Analyze how prices change through the interaction of buyers and sellers in a market including the role of supply, demand, equilibrium, surpluses, and shortages.
• Graphically demonstrate and explain the affects of price ceilings, prices floors and quotas on price and quantity.

III.  Test Review:

• Know how to graph equilibrium, shortage, surplus. Price ceiling , price floor, and quotas.  Explain the impact of a price ceiling or price floor on Price Qd, and Qs. Example Page 79 #1
• Change in Qd, Change in Qs, determinants that change Demand, and determinants that change Supply
• Review previous iLearn Quiz
• Discuss Questions on Pages 100-103
• Additional practice questions on iLearn

IV,  Chapter 2 test Tomorrow

AP Economics