Answer Sheet 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 6 00 5 50 5 00 4 50 4 00 3 50 3 00 Quantity Demanded 220 240 260 280 300 320 340 Quantity Supplied 400 360 320 280 240 200 160 2 On a separate piece of graph paper use the data to plot demand and supply curves 3 Answer the a What b What c What following question is the market price 4 50 is the quantity demanded at the market price 280 is the quantity supplied at the market price 280 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 Price Ceiling 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 300 d At a price of 4 00 the quantity supplied would be 240 e Is there a surplus or shortage of cheese shortage 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 Price Floor 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 240 d At a price of 5 50 the quantity supplied would be 360 e Is there a surplus or shortage of cheese Surplus