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Glendale Community College Demand and Supply Discussion Question

Glendale Community College Demand and Supply Discussion Question

Question Description

If you live in the US northeast you know about snowstorms and the need to plow your driveway. After a recent storm last year a man petitioned his city council to pass an ordinance that would prevent snowplow companies from charging more than $100 to plow driveways. That was the typical price before a major storm that caused companies to raise their price to $300 per driveway.

Using your analysis of markets, was this a good idea? Explain using a supply/demand diagram. You may describe the diagram or put it in your answer.

Then, again using a supply/demand diagram with shifts (either described or put in) what would a better solution be? Describe carefully what cause the shift you describe and why it is a better solution.


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