In some cases, the government can intervene in the market when the equilibrium price is too high or low. For example, a price ceiling is a legal maximum price that can be charged in a particular market.

1. Is a price ceiling set above or below the market price?
2. What would be an example of a price ceiling and discuss some disadvantages and advantages of this type of government intervention?
3. An art museum raises its admission price, and ends up with a decrease in its total revenue. How could you explain this situation to the museum director?
4. Suppose Billy drinks two cups of coffee a day no matter what the price. What does this mean in terms of supply and demand equilibrium?
5. What are the main determinants of equilibrium of demand and supply? Which is likely to have more of an impact on supply and therefore market equilibrium: the demand for orange juice or the demand for a particular brand of orange juice?

Reference

What Happens to the Equilibrium Price When Quantity of Supply & demand Shifts Upward? Chirantan Basu, 2018. Retrieved fromhttps://tinyurl.com/y8qz8v8o(https://smallbusiness.chron.com/happens-equilibrium-price-quantity-supply-demand-shifts-upward-36644.html)

Price ceilings and price floors: how does quantity demanded react to artificial constraints on process? Khan Academy.https://tinyurl.com/yaxj34ym(https://www.khanacademy.org/economics-finance-domain/ap-microeconomics/ap-supply-demand-equilibrium/ap-deadweight-loss-tutorial/a/price-ceilings-and-price-floors-cnx)