Research a case of government controls in the form of a price ceiling or a price floor and provide the following responses to the prompts and questions:
Provide a summary of the ceiling or floor and discuss the intended effects of the price constraint. What problem is designed to be resolved and what parties are intended to benefit from the price constraint? Who were the parties arguing for or against the price constraint and what were there arguments?
What are the actual effects of the price constraint and have their been any unintended consequences? Discuss them. Have there been shortages or surpluses; are they measurable?
What have been the effects on society overall? In essence what have been the effects on consumer and producer surplus?
What alternative approaches could have been used to help address the original problem and what are your recommendations?
Sample Solution