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Principles of Microeconomics / Unit 2   MIC 0121 short lesson, about 20 seconds

Price Controls

Captions available

The idea

A price control is a law that sets a price instead of letting the market find it. A ceiling is a legal maximum; a floor is a legal minimum.

In practice

Rent control is a ceiling; a minimum wage is a floor.

Where people slip

A control moves neither curve: buyers and sellers keep the same intentions and are forbidden to act on them at some prices.

Your place on the trail

Every lesson rests on earlier ones and opens later ones. Tap any to jump.

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