Objective
Students will be able to:
- Apply supply and demand analysis to the impacts of price ceilings and floors on the economy.
- Represent them on a graph.
Standards
Concepts
In this economics video series, students will learn about price ceilings and floors.
Description
How did Nixon’s economy-wide price ceiling lead to the drowning of millions of baby chicks? This and more is covered in the first of this unit of eleven videos on price controls. Other topics include the way price ceilings bring about shortages, quality reduction, misallocation of resources, lines and search costs, and deadweight loss. Also included is an on-the-ground look at rent controls in Mumbai, and analysis of price floors in the labor market (minimum wage) and airline fares. Every video comes with practice questions!
Subjects:
Economics