Price Ceilings: Deadweight Loss
- Title:
- Price Ceilings: Deadweight Loss
- Description:
-
more » « less
In this video, we explore the fourth unintended consequence of price ceilings: deadweight loss. When prices are controlled, the mutually profitable gains from free trade cannot be fully realized, creating deadweight loss. With price controls, less trading occurs and both buyers and sellers miss out on the mutually profitable gains that could have occurred. We’ll show how to calculate deadweight loss using our example of a price ceiling on gasoline.
Microeconomics Course: http://mruniversity.com/courses/principles-economics-microeconomics
Ask a question about the video: http://mruniversity.com/courses/principles-economics-microeconomics/price-ceiling-deadweight-loss#QandA
Next video: http://mruniversity.com/courses/principles-economics-microeconomics/price-ceiling-misallocation-of-resources
- Video Language:
- English
- Team:
Marginal Revolution University
- Project:
- Micro
- Duration:
- 03:33
|
MariaMa edited Chinese, Traditional subtitles for Price Ceilings: Deadweight Loss | |
|
Michel Smits edited Dutch subtitles for Price Ceilings: Deadweight Loss | |
|
|
Michel Smits edited Dutch subtitles for Price Ceilings: Deadweight Loss | |
|
|
Michel Smits edited Dutch subtitles for Price Ceilings: Deadweight Loss | |
|
Peter Balla edited Hungarian subtitles for Price Ceilings: Deadweight Loss | |
|
Fran Ontanaya edited Hungarian subtitles for Price Ceilings: Deadweight Loss | |
|
Miguel David Vargas Iscala edited Spanish subtitles for Price Ceilings: Deadweight Loss | |
|
|
Miguel David Vargas Iscala edited Spanish subtitles for Price Ceilings: Deadweight Loss |