Return to Video

Price Ceilings: Deadweight Loss

No subtitles available.
Title:
Price Ceilings: Deadweight Loss
Description:

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

more » « less
Video Language:
English
Team:
Marginal Revolution University
Project:
Micro
Duration:
03:33
There has been no activity on this language so far.

Bengali subtitles

No revisions available.