Not Enough or Too Much

Read the following chapters from your textbook: Economics, 13th edition (Arnold, 2019):

• Chapter 4 – Prices: Free, Controlled, and Relative
• Chapter 5 – Supply, Demand, and Price: Applications

Review Chapter 3 – Supply and Demand: Theory

Not Enough or Too Much

Discussion

Select & Determine

Not enough or too much; it’s a delicate balance. In this activity, you will select a country and explore the concepts of price ceiling and price floors and market shortages and surpluses.

Locate a recent article (published within the last year) that discusses either the price ceiling or price floor, and market shortages and surpluses of a good or service from your selected country at a macro level. You can use newspapers, new stations, or other credible sources to locate an article. Analyze your selected country’s good or service and determine whether it has a market shortage or surplus. Include the following in your discussion.

• Identify the country and the good or service selected.
• Analyze supply and demand curves.
• Examine the concepts of price ceilings and price floors.
• Explain the causes and predict the effect of changes in demand and supply on the equilibrium price and quantity.
• Differentiate between consumer surplus and producer surplus.
• Discuss whether your selected good or service results in a market surplus or market shortage and explain why.

Summarize your findings using at least 250 words and provide a minimum of one reference. Use current APA formatting to document your sources.