Price Controls: Creating Stability or Creating Problems?

The video discusses price controls as a form of government intervention to stabilize market prices. It explains the concepts of maximum and minimum price controls, their effects on supply and demand, and their applications in various markets. The video also highlights the potential issues and unintended consequences of price controls, such as welfare loss, black markets, and government failure.

Explain how price controls can create market failures.

Discuss the rationale behind introducing a minimum price for alcohol in Scotland.

What are the implications of deadweight loss in the context of price controls?

What factors should governments consider when setting price controls?