Social Sciences and History / Unit 13 SSH 1218 short lesson, about 20 seconds
Price Floors Make Surpluses
Captions available
The idea
A price floor is a legal minimum price. Set above the equilibrium, it keeps price from falling, so quantity supplied exceeds quantity demanded: excess supply, a surplus. Below equilibrium it binds nothing. Binding ceiling, shortage; binding floor, surplus.
In practice
Price supports: unsold grain in silos.
Where people slip
Surplus here is unsold goods, not welfare.
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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