this is Applications of Supply and Demand.

Quick Review . What are the consequences of the . What are the consequences of government setting a binding price a price floor's economic ceiling? impact on price, quantity What are the consequences of a price ceiling's economic impact demanded and quantity on price, quantity demanded and supplied? quantity supplied? How do you compute and . How can you compute and demonstrate the market demonstrate the market shortage surplus resulting from a price resulting from a price ceiling? floor? . What are the consequences of the . What is the economic effect of government setting a binding price floor? government setting price ceilings and floors? Quick Review (cont.) . Why does voluntary trade . How can you explain how price floors benefit both parties? and price ceilings lead to allocation . Why does voluntary trade lead inefficiency and loss of social surplus? to allocation efficiency? How can the theories of supply & . How can you explain, calculate, demand be applied to labor markets? and illustrate consumer surplus? How can the theories of supply & . How can you explain, calculate, demand be applied to financial and illustrate producer surplus? markets? . How can you explain, calculate, . What is the four-step process to and illustrate social surplus? predict how economic conditions cause a change in supply, demand, and equilibrium