Episode 15: Price Floors and Price Ceilings

What happens when the government interferes with the market mechanism by artificially imposing a "better" price?

Category:

Education

Tags:

• economics
• market
• government
• price
• floor
• ceiling

[corvettez06c]

Hi,

In Our book, there are 2 kind of Price Ceiling, and 2 other of Price Floor ....

And they are:

-Price Ceiling, And Price Ceiling is Binding "Binding Constraint"

-Price Floor, And Price Floor is Binding "Binding Constraint"

So, You already explained The Price Ceiling & Price Floor "Binding Constraint", and they effect the Market

About the other one "Price Ceiling & Price Floor", they don't effect the Market, they are ONLY a Limit Above the Equilibrium Price

Thanks A Lot for this Video btw :)

[mjmfoodie]

@corvettez06c All legally established maximum prices are price ceilings, but not all price ceilings are binding. If the government sets a maximum price of $5, but the market settles in at an equilibrium of $4, then the legal cap of $5 in no way interferes with where the market "wants" to be, and is a non-binding constraint.

(The same logic is true for price floors.)

[timetraveler3797]

Are these video's made by you or someone else?

[mjmfoodie]

It's all me . . .

[checkyesgaby]

i am passing economics class because of you. thank you thank you thank you thank you!!!!!!!!!!

[mjmfoodie]

My pleasure.

[20PARKES]

these videos really are fantastic for learning Economics! thank u

[extensad7]

awesome :D

[fluffyangelzx]

OMG thank you so much!! I finally understand what ceiling and floor is!! SUBSCRIBED!

[feelthemelody1]

you are soo amazing, u actualyy make sence!!!



[BailliveDeCaen]

OH MY GOD. I LOVE YOU!!!!

[WeEatBrainz]

Your lessons are fantastic! Your short 6 minute videos cover the same content as my textbook does in a chapter. I swear, 90% of my textbook is filler, they spend pages repeating content you have already learned.

[misspassiflora]

excellent explanation: there may be a chance that ill pass my eco exam after all. Thanks from down under.

[unrivaled37]

Thank you for posting these videos! They are helping me study for my AP Micro/Macro exam this coming thursdday!

[spirituelconnexion]

thank you



[GanjaGarb]

That was amazing. I loved it.