Principles of Microeconomics / Unit 17 MIC 1611 short lesson, about 20 seconds
Price Controls and the Loss
Captions available
The idea
A ceiling binds below equilibrium and makes a shortage; a floor binds above and makes a surplus. Both cut quantity; the units not traded are deadweight loss, and the surplus that moves between sides is a transfer.
In practice
Rent control makes a shortage; a minimum wage a surplus.
Where people slip
A control on the wrong side of equilibrium does nothing; check that it binds.
Your place on the trail
Every lesson rests on earlier ones and opens later ones. Tap any to jump.
Builds on
Unlocks
- Nothing yet depends on this.
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