Assignment: suggestions for further resources, questions of clarification, or providing context and insight. Avoid simple posts of agreement; if you agree, explain why, and then thoughtfully further the conversation.

Post: This week we've been learning about the economy and what it means for the government to set a price ceiling or a price floor. This basically means that there is a maximum price (ceiling) or minimum price (floor) for goods and services. An example of a price ceiling might be prescription drugs. The government may put a price ceiling on some drugs in order "to ensure that everyone has access to medication, especially low-income people amid otherwise free-market pricing" (MasterClass, 2021). This is effective when the prescription drug is something that is widely used by a majority of the population. However, this could be ineffective for people who cannot benefit from that particular medication and they must use something similar to achieve a similar outcome, but the price might be higher than the popular medication. "(...)Price ceilings are effective in containing the prices of some drugs, [however,] they can lead to higher prices for others, particularly if the ceilings are set at the national level irrespective of local economic conditions''(Li, 2021). Since not every body is the same, some people may react to certain medications, not allowing them to purchase the drugs that are listed under the price ceiling and forcing people to purchase a medication that may be much more expensive. Some consequences of price ceilings could be lower quality goods or services and a price ceiling may lead to a shortage if the price ceiling is set under what the cost of production for the goods are so the manufacturers are not making any profits. An example of a price floor would be minimum wage. This is meant to keep employers from paying their staff too little, however, over the years, minimum wage has desperately needed an adjustment / increase to keep up with today's cost of living. "Price floors that are set in extreme access of the equilibrium point are bad for society. This is because it creates an artificial surplus and creates a reduction in demand that is not socially optimal" (Boyce, 2021). The surplus and reduction in demand is an example of an unintended consequence for price floors. Lastly, subsidies are a type of aid where funds are given to certain industries or businesses to support them and help maintain low and competitive prices because the government deems these industries to be important to the economy.