Price floors, when prices are kept artificially high, lead to several consequences that hurt the consumer. In this video, we take a look at the minimum wage as an

Price floors, when prices are kept artificially high, lead to several consequences that hurt the consumer. In this video, we take a look at the minimum wage as an example of a price floor. Using the supply and demand curve and real world examples, we show how price floors create surpluses (such as a surplus in labor, or unemployment) as well as deadweight loss.

Download
Options
Translate Practice Questions

Contributed Content (0)

Ask a Question

 
user's picture

When there is effect of minimum wage, unemployement is Qs minus Qd. In free market, Qs equals Qd. There is no more gain and no loss.

Please register or login to answer a question
Please register or login to ask a question