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