The government intervenes in the market by trying to help the consumers or the producers, however there are several consequences to those price settings. In this exchange/discussion , you will:
a- pick one of the subtopics listed below, expand on it and give a hyperlink to articles that support your position. Please include information presented in the article and give your own view/opinion.
b- you will post a comment/answer/question to what one of your colleagues have posted.
It helps to post early because you will need to read all that your colleagues have posted and if someone has already posted on one of the subtopics, you need to make sure that you are not repeating what they have already said but you could expand with relevant information to engage your colleagues in this discussion. If you are posting a few minutes before the deadline, your post cannot be considered as a discussion since it would be too late for your colleagues to engage in an exchange of ideas. That late post will not give you much credit for this assignment.
Your post should not exceed 250 words.
– Give an example of government setting a price ceiling to help the consumers. Explain what will be the consequences in the short and long run. Look at the supply and demand for the product or service, explain if the price set is below or above the initial equilibrium. Will there be a surplus shortage of the product? How will the government manage this situation? What will be the ultimate costs and benefits to individual consumers, suppliers and society in general.
– Give an example of government setting a price floor to help the producers. Will that price be above or below the original equilibrium? Will this result in a shortage or surplus of the product? How will the government manage the situation? What will be the ultimate costs and benefits to individual producers and society in general.
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