Topic 7: Price Controls
Key Points
- Define price ceilings and price floors
- State the effects of a price ceiling that is below the equilibrium price
- State the effects of a price floor that is above the equilibrium price.
- Use a supply and demand graph to illustrate some of the effects of ceilings and floors.
Videos
Price Ceilings
Examples of Price Ceilings
Price Floors
An Example of a Price Floor
Are Minimum Wages Good?