Bellringer1. If you could attend any college in

the US where would it be?2. Why did you pick that college?3. What 2 things would happen if

the state of AZ lowered the price of college classes to $50 per class?

In your notesFind the equilibrium price of 1 roll of toilet

paper

Price Quantity Supplied

Quantity DemandedPrice

$0.50$ 1.00$ 1.75$ 2.25$ 3.00

1003007009001500

$ 0.25$ 0.50$ 1.00$ 2.25$ 3.00

1500900600400300

0

0.25

0.5

0.75

1

1.25

1.5

1.75

2

2.25

2.5

2.75

3

0 100 200 300 400 500 600 700 800 900 1000 1100 1200 1300 1400 1500

2. Why might a politician argue this isn’t a fair price for

large families?

Toilet paper

0

0.25

0.5

0.75

1

1.25

1.5

1.75

2

2.25

2.5

2.75

3

0 100 200 300 400 500 600 700 800 900 1000 1100 1200 1300 1400 1500

D

SP

Q

At your tablesSay the government, to help large families, made it illegal for the price to be higher than $0.50 per roll.1. What would happen to the amount of toilet paper people

would want to buy?

2. What would happen to the amount of toilet paper producers would want to sell?

3. What would happen to the number of sheets per roll?

4. What would happen to the texture of the toilet paper?

5. What other markets might be effected? (paper products?)

6. Who would get first chance at buying the toilet paper?

7. What would happen to the level of corruption in the country?

Toilet paper

0

0.25

0.5

0.75

1

1.25

1.5

1.75

2

2.25

2.5

2.75

3

0 100 200 300 400 500 600 700 800 900 1000 1100 1200 1300 1400 1500

D

SP

Q

Surely no country would try this….

http://www.huffingtonpost.com/tag/venezuela-toilet-paper-shortage

Price CeilingDesigned to help

consumers

Illegal to charge higher than the price

Example: Venezuela TP

Problems?

Quality

Shortages

Price CeilingDesigned to help

consumers

Illegal to charge higher than the price

Example: Rent Controls

Problems?

Quality

Shortages

Stossel Clip

Supply/Demand project (35 points) Choose a market that interests you Identify 3 major corporations involved in the market (-5 if

missing) Explain whether the demand is elastic or inelastic (-10 if missing,

-5 if not explained correctly) Evaluate the effect of a government price ceiling on your market

(-5 if missing) Find two articles that affect that market’s supply or demand

curves (-10 for no citation) Cite your sources, use the Economist or your phone, MLA format Draw a graph for each article and short explanation of change ,

explain what happens to EqP, identify the determinant that changes (PEST = Supply, TRIBE = Demand) (-2 for each mistake)

Show the change to secondary market, could be a complement, substitute, or factor of production (-10 if missing)

Must be color and include a few pictures (-10 if missing) Make either a color poster or pamphlet, or website

Example: Housing market

Secondary market Copper wire