Directions: Complete the questions below by referring to the corresponding information or websites located above each question set (A-C). Answer the questions electronically in RED text or hand write the answers, scan the document, and upload it in this assignment box. A. Watch this 5 minute video clip about demand and answer the questions below: http:/www.youtube.com/watch?v=AV_p9rDL9mA 1. What is the purpose of a price ceiling? 2. Why is there a 500 gallon shortage of milk in this video? 3. What are some problems with price ceilings? B. Watch this 8 minute video clip about demand and answer the questions below: http:/www.youtube.com/watch?v=L9P- OdT1vg&list SP22785443C5FBOF83&index-33&feature-plp p video 1. Explain the different between binding and non-binding price ceilings. 2. What does market equilibrium mean? 3. What is a persistent shortage? C. A store sells cheddar cheese by the pound. The chart reflects the quantity demanded and the quantity supplied for the different prices the cheese could be sold. Price Quantity Quantity Supplied Demanded $6.00 220 400 5.50 240 360 5.00 260 320 4.50 280 280 4.00 300 240 3.50 320 200 3.00 340 160 2. Draw the demand and supply curves using the schedule above. 3. Answer the following questions in reference to #2: a. What is the market price? b. What is the quantity demanded at the market price? c. What is the quantity supplied at the market price? 4. On your graph, draw a line across your graph at the price of $4.00. a. If the government were to set a price no higher than $4.00, this would be called a b. Use your answer in (a) to label the line on your graph at the price of $4.00. c. At a price of $4.00, the quantity demanded would be d. At a price of $4.00, the quantity supplied would be e. Is there a surplus or shortage of cheese? 5. On your graph, draw a line across your graph at the price of $5.50. a. If the government were to set a price no lower than $5.50, this would be called a b. Use your answer in (a) to label the line on your graph at the price of $5.50. c. At a price of $5.50, the quantity demanded would be d. At a price of $5.50, the quantity supplied would be e. Is there a surplus or shortage of cheese? Explain