Course

Price Floors

Instructor: Alex Tabarrok, George Mason University

This is " Price Floors: The Minimum Wage " from our Principles of Economics: Microeconomics course. Price floors, when prices are kept artificially high, lead to

This is "Price Floors: The Minimum Wage" from our Principles of Economics: Microeconomics course.

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.

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