Applying Supply & Demand AnalysisCeiling Prices, Floor Prices and Black MarketsSlide 3Slide 4Slide 5Slide 6Slide 7Slide 8Slide 9Slide 10Slide 11Slide 12Slide 13Slide 14Slide 15Hurricane Hugo, Price Ceilings and Disaster ReliefSlide 17Slide 18Slide 19Slide 20Slide 21Slide 22Slide 23Slide 24Slide 25Slide 26Slide 27Before HugoBefore Hugo.After Hugo, with no price ceiling.Slide 31Slide 32Slide 33Slide 34Slide 35Slide 36Slide 37After Hugo, with a price ceiling.After Hugo, with a price ceilingAfter Hugo, With Price Ceilings.Slide 41After the Disaster, With the Price CeilingSlide 43Slide 44Slide 45Slide 46Slide 47Slide 48Slide 49Slide 50Slide 51Slide 52Slide 53Slide 54Slide 55Slide 56Slide 57Slide 58Slide 59Slide 60Slide 61Slide 62Slide 63Slide 64Slide 65Slide 66Slide 67Slide 68Slide 69After the Disaster, with No Price Ceiling and Seller EntrySlide 71Slide 72Slide 73Slide 74Slide 75Slide 76Slide 77Slide 78Slide 79Slide 80Slide 81Slide 82Applying Supply & Demand Applying Supply & Demand AnalysisAnalysisThe Case of Price Ceilings The Case of Price Ceilings and Disaster Reliefand Disaster ReliefCeiling Prices, Floor Prices and Ceiling Prices, Floor Prices and Black MarketsBlack MarketsAA CEILING PRICE CEILING PRICE isisCeiling Prices, Floor Prices and Ceiling Prices, Floor Prices and Black MarketsBlack MarketsAA CEILING PRICE CEILING PRICE is is a a maximum maximum legal pricelegal price at which a commodity can at which a commodity can be tradedbe traded..Ceiling Prices, Floor Prices and Ceiling Prices, Floor Prices and Black MarketsBlack MarketsAA CEILING PRICE CEILING PRICE is is a a maximum maximum legal pricelegal price at which a commodity can at which a commodity can be tradedbe traded..AA FLOOR PRICE FLOOR PRICE isis aaCeiling Prices, Floor Prices and Ceiling Prices, Floor Prices and Black MarketsBlack MarketsAA CEILING PRICE CEILING PRICE is is a a maximum maximum legal pricelegal price at which a commodity can at which a commodity can be tradedbe traded..AA FLOOR PRICE FLOOR PRICE isis a a minimum legal minimum legal priceprice at which a commodity can be at which a commodity can be tradedtraded..Ceiling Prices, Floor Prices and Ceiling Prices, Floor Prices and Black MarketsBlack MarketsWhenever a commodity is traded at a Whenever a commodity is traded at a price above its ceiling price or at a price above its ceiling price or at a price below its floor price, the trade price below its floor price, the trade is illegal and is calledis illegal and is calledCeiling Prices, Floor Prices and Ceiling Prices, Floor Prices and Black MarketsBlack MarketsWhenever a commodity is traded at a Whenever a commodity is traded at a price above its ceiling price or at a price above its ceiling price or at a price below its floor price, the trade price below its floor price, the trade is illegal and is called is illegal and is called blackblack..Ceiling Prices, Floor Prices and Ceiling Prices, Floor Prices and Black MarketsBlack MarketsWhenever a commodity is traded at a Whenever a commodity is traded at a price above its ceiling price or at a price above its ceiling price or at a price below its floor price, the trade price below its floor price, the trade is illegal and is called is illegal and is called blackblack..Any price at which such an illegal Any price at which such an illegal trade is made is called atrade is made is called aCeiling Prices, Floor Prices and Ceiling Prices, Floor Prices and Black MarketsBlack MarketsWhenever a commodity is traded at a Whenever a commodity is traded at a price above its ceiling price or at a price above its ceiling price or at a price below its floor price, the trade price below its floor price, the trade is illegal and is called is illegal and is called blackblack..Any price at which such an illegal Any price at which such an illegal trade is made is called a trade is made is called a black black market pricemarket price..Ceiling Prices, Floor Prices and Ceiling Prices, Floor Prices and Black MarketsBlack MarketsA well-known example of a federally A well-known example of a federally mandated US floor price ismandated US floor price isCeiling Prices, Floor Prices and Ceiling Prices, Floor Prices and Black MarketsBlack MarketsA well-known example of a federally A well-known example of a federally mandated US floor price is mandated US floor price is the the minimum wage rateminimum wage rate..Ceiling Prices, Floor Prices and Ceiling Prices, Floor Prices and Black MarketsBlack MarketsA well-known example of a federally A well-known example of a federally mandated US floor price is mandated US floor price is the the minimum wage rateminimum wage rate..A well-known example of a locally A well-known example of a locally mandated ceiling price ismandated ceiling price isCeiling Prices, Floor Prices and Ceiling Prices, Floor Prices and Black MarketsBlack MarketsA well-known example of a federally A well-known example of a federally mandated US floor price is mandated US floor price is the the minimum wage rateminimum wage rate..A well-known example of a locally A well-known example of a locally mandated ceiling price ismandated ceiling price is rent rent controlcontrol..Ceiling Prices, Floor Prices and Ceiling Prices, Floor Prices and Black MarketsBlack MarketsWe shall examine in detail the use of We shall examine in detail the use of ceiling pricesceiling prices to regulate markets for to regulate markets for essential commoditiesessential commodities immediately immediately after after Hurricane HugoHurricane Hugo devastated devastated parts of South Carolina.parts of South Carolina.Hurricane Hugo, Price Ceilings Hurricane Hugo, Price Ceilings and Disaster Reliefand Disaster ReliefAll electrical power was knocked out All electrical power was knocked out in Charleston and nearby areasin Charleston and nearby areas..Water purifiers, bottled water, ice and Water purifiers, bottled water, ice and propane were in high demand. propane were in high demand. Tarpaulins were needed to cover Tarpaulins were needed to cover holes in roofs .holes in roofs .Chainsaws were in heavy demand.Chainsaws were in heavy demand.Hurricane Hugo, Price Ceilings Hurricane Hugo, Price Ceilings and Disaster Reliefand Disaster ReliefPortable generators were needed to Portable generators were needed to provide electric power.provide electric power.Stores were heavily damaged, so Stores were heavily