Question: 2. Introduce a price ceiling into your graph. Set the price ceiling below the initial equilibrium price. Label the new price as Pc (price ceiling).

2. Introduce a price ceiling into your graph. Set the price ceiling below the initial equilibrium price. Label the new price as Pc (price ceiling). Identify and shade the area that represents the shortage created by the price ceiling. Explain how the price ceiling affects the quantity demanded and quantity supplied. 3. Introduce a price floor into your graph. Set the price floor above the initial equilibrium price. Label the new price as Pf (price floor). Identify and shade the area that represents the surplus created by the price floor. Explain how the price floor affects the quantity demanded and quantity supplied. 4. Discussion: Discuss the potential economic effects of implementing a price ceiling and a price floor in the housing market. Consider the impacts on consumers and producers

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2. Information that comes most readily to mind (availability).

3. An initial value (anchoring).

4. Similarity (representativeness).