[SOLVED] Price Ceiling Research
During times of natural disasters, price ceilings are often employed to keep prices low for consumers. We most often see this with gasoline but also see it with other goods. Starting with your textbook and then incorporating additional research: Discuss what economic theory happens with a binding price ceiling. Draw a supply and demand graph illustrating the binding price ceiling (do not just copy and paste a graph; create your own). Discuss what elasticity conditions (labor demand/supply perfectly elastic, elastic, unitary elastic, inelastic, or perfectly inelastic) would be needed for the binding price ceiling to benefit affected consumers. Discuss how goods and services are allocated under a binding price ceiling.
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