draw a graph and an analysis, starting with the initial equilibrium and then showing how the eventgenerates a price ceiling or price floor. Make sure to

include the winners in a losers in your graph and your analysis.Again, make sure to

answer each question with its own separate graph that includes supply and demand with its equilibrium price and quantity (labeled as P1 and Q1) and then draw the price ceiling or floor that

generates the shortage or surplus and the winners and losers. The graph is worth 1/2 the points and the analysis is worth 1/2 the points.

Questions:

1. Can you explain the practice of scalping tickets for major sporting events in terms of market shortages? How else might tickets be distributed?

2. If rent controls are so counterproductive, why do cities impose them? How else might the housing problems of poor people be solved?

3. Who is harmed by rent controls? Who is helped?

4. What would happen in the apple market if the government set a minimum price of $2.00 per apple? What might motivate such a policy?

5. Is there a shortage of on-campus parking at your school? How might the shortage be resolved?