Econ 1 Microeconomics B2A Prices have soared for parking facilities.

Question 4.(10 marks) Prices have soared for parking facilities in downtown Toronto. Pressure from wwwwwww voters has convinced the Toronto City Council to impose a price ceiling of $5 per day on all parking garages and lots. (a) What will be the likely effect on the market for parking spaces in Toronto? Who will gain? Who will lose. Explain graphically or otherwise. (5 marks) (b) Graphically explain the impact of decreasing the price ceiling from $5 to $ 4. Will there be increase/ decrease in surplus/shortage. (4 for graph and 1 for correct answer) Answer. WE