Thursday, September 26, 2013

Government Intervnetion

Government Intervention usually encompasses Subsidies, Taxation and Price Controls (floors and ceilings).

Read the following articles about the Hawaii's experiments:

http://usatoday30.usatoday.com/money/industries/energy/2005-08-24-hawaii-gas_x.htm

http://www.foxnews.com/story/2006/05/08/hawaii-stops-gasoline-price-controls/

The impacts of price floor and ceilings are discussed in your books on pages 81-90.  Read these pages carefully.   There will be a test on Monday, October 7.





Tuesday, September 10, 2013

McDonalds

Using Elasticity, explain why McDonald's instituted the Dollar Menu.