Calculating the Effects of Price Controls

This lesson applies linear equations for demand and supply to our analysis of the effects of price controls. We can determine the precise surplus that will result from a price floor or the shortage that results from a price ceiling by applying the government set prices to the equations for supply and demand.

Before watching this video students should view the lesson that introduces price controls, Determining the Effects of Price Ceilings nad Price Floors.

 

Share this lesson!
Share

Leave a Comment