Glendale Community College Demand and Supply Discussion Question

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.