A legal maximum on the price at which a good can be sold.

A legal minimum on the price at which a good can be sold.

On graph number one, found on your handouts, identify the part highlighted in green.

The manner in which the burden of a tax is shared among participants in a market.

When the quantity demanded exceeds the quantity supplied.

When the equilibrium price is below the ceiling, the price ceiling is _______.

The equilibrium price is above the price floor, the price floor is ___ _________.

On graph number two, found on your handouts, price ceiling is either binding or not binding in this case.

With elastic demand and inelastic supply, the burden of a tax falls largely on the ______.

When the quantity supplied exceeds the quantity demand.

When the government imposes a binding price ceiling on a competitive market, a _____ of the good arises.

Market forces naturally move the economy to the equilibrium, and the price floor has __ _______.

A tax on buyers shifts the demand curve ________ by the size of the tax.

The key feature of _______ _____ is that it places a wedge between the wage that firms pay and the wage that workers receive.

Two attempts by the government to maintain prices at other than equilibrium levels.

The forces of supply and demand tend to move the price toward the equilibrium price, but when the market price hits the ceiling, it can, by law, ___ __ _____.

A binding price floor causes a ______.

On graph number three, the price floor is either binding or not binding in this case.

A tax on sellers shifts the supply curve __________ by the size of the tax.

Prices have the crucial job of __________ ______ ___ ______ and, thereby, coordinating economic activity.

Example: The government imposes a price ceiling of $4 on ice cream. Because the price ceiling is above the equilibrium price of $3, the price ceiling has _____ effect.

Example: Government imposes a price floor of $4 per ice cream cone. The equilibrium price of $3 is below the floor, the price floor is a ________ __________ on the market.

On graph number four, identify the indicated part in dark purple.

An example of a wage subsidy is the _____ _______ ___ _____, a government program that supplements the incomes of low-wage workers.

When the equilibrium price is above the price ceiling, the ceiling is a ______ ________ on the market.