Chapter Introduction
80
MODULE 8
Supply and Demand: Price Controls (Ceilings and Floors)
istockphoto
8Supply and Demand: Price Controls (Ceilings and Floors)
In this Module, you will learn to:
Explain the workings of price controls, one way government intervenes in markets
Describe how price controls can create problems and make a market inefficient
Explain why economists are often deeply skeptical of attempts to intervene in markets
Identify who benefits and who loses from price controls