“Worksheet: Price Ceilings and Price Floors”
1. A store sells cheddar cheese by the pound. The chart reflects
the quantity demanded and the quantity supplied for the
different prices the cheese could be sold.
Price Quantity Quantity Supplied
Demanded
$6.00 220 400
5.50 240 360
5.00 260 320
4.50 280 280
4.00 300 240
3.50 320 200
3.00 340 160
2. On a separate piece of graph paper, use the data to plot demand
and supply curves.
3. Answer the following question:
a. What is the market price?
b. What is the quantity demanded at the market price?
c. What is the quantity supplied at the market price?
4. On your graph, draw a line across your graph at the price of
$4.00.
a. If the government were to set a price no higher than
$4.00, this would be called a ________
b. Use your answer in (a) to label the line on your graph at
the price of $4.00.
c. At a price of $4.00, the quantity demanded would be ____
d. At a price of $4.00, the quantity supplied would be ______
e. Is there a surplus or shortage of cheese?
5. On your graph, draw a line across your graph at the price of
$5.50.
a. If the government were to set a price no lower than $5.50,
this would be called a ________
b. Use your answer in (a) to label the line on your graph at
the price of $5.50.
c. At a price of $5.50, the quantity demanded would be ____
d. At a price of $5.50, the quantity supplied would be ______
e. Is there a surplus or shortage of cheese?