Quotulatiousness

July 20, 2015

Price Floors: The Minimum Wage

Filed under: Economics — Tags: , , , , — Nicholas @ 05:00

Published on 25 Feb 2015

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.

Related posts:

  1. Price Ceilings: Deadweight Loss
  2. A real-life experiment – does a higher minimum wage cause job losses?
  3. Price Ceilings: Shortages and Quality Reduction
  4. Minimum wage and “living wage”
  5. Tax Revenue and Deadweight Loss

No Comments

No comments yet.

RSS feed for comments on this post.

Sorry, the comment form is closed at this time.

Powered by WordPress