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: Provide an example of a price ceiling and discuss its effectiveness or ineffectiveness. When hurricane Sandy hit the northeast coast of united states in 2012, both New York and New Jersey created a policy to set the price ceiling on common goods such as water and gasoline. As we are familiar with the tragic loss of loved ones and personal property, adding a price ceiling on such essential items like water was effective for consumers to stay hydrated while having to pay for needs. This helped the population avoid price gouging.

What are some unintended consequences of price ceilings on the economy? When setting a limit towards a business's product or service and setting a price ceiling can cause discouragement. When a business produces or can produce more or less crops, the government can cap how much produce to make so that the economy doesn't to deal with deadweight loss created. If farmers produce more than they can sell, they have less of a demand for the product and will also be out of equilibrium. Provide an example of a price floor and discuss some of the intended and unintended consequences of this type of policy or government intervention. Most of the countries have a set minimum wage and can vary from country to country. If the minimum wage is set above the equilibrium level and can cause a lower demand in people willing to work. Subsidies are commonly applied by most developed nations on select sectors of the economy. Why do countries give subsidies to some sectors of the economy? Subsidies are provided to business that product or a service. As an example of this would be the government providing some form of payment, tax breaks or some form of economic support given by the government to provide for helping the economy.