Micro 2.5 Government Price Controls (Old Version): Econ Concepts in 60 Seconds

The video tutorial covers key concepts of price controls, focusing on price ceilings and floors. It explains how price ceilings set below equilibrium lead to shortages, as consumers demand more than producers supply. Conversely, price floors set above equilibrium result in surpluses, where producers supply more than consumers demand. Understanding these concepts is crucial for analyzing market dynamics and is relevant for AP tests.

Describe the effects of a price floor on the market.

How does a surplus occur in the context of price floors?