Principles of Microeconomics / Unit 2 MIC 0122 short lesson, about 20 seconds
Price Ceilings
Captions available
The idea
A price ceiling set below equilibrium creates a shortage: at the legal price, buyers want more than sellers offer, and the price is not allowed to rise to clear it.
In practice
At a controlled rent, more families want apartments than landlords will let.
Where people slip
The shortage persists. Without a rising price to ration the good, something else does: waiting lists, favoritism or side payments.
Your place on the trail
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