Micro: Unit 1.4 -- Government Intervention: Price Controls, Quotas, and Subsidies
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In this video, I will:
Describe how the use of a price ceiling changes price level and quantity in a market, as
well as the pros and cons of price ceilings
Explain how the use of a price floor changes price level and quantity in a market, as well
as the pros and cons of price floors
Discuss how the use of a production quota changes price level and quantity in a market,
as well as the pros and cons of quotas and why quotas are used in the product market
Describe how the use of a per unit subsidy changes price level and quantity in a market,
as well as the pros and cons of subsidies and why subsidies are used in the product
market
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