EO06 Price Controls, The Hidden Market Impact

In this video, Theo Roos explains the concept of price controls, which are government-imposed limits on the prices of goods and services. He discusses two main types: price ceilings, which set a maximum price leading to shortages, and price floors, which impose a minimum price causing surpluses. Additionally, he covers the impact of taxes on market behavior, including how they affect buyers and sellers differently, depending on supply and demand elasticity. Ultimately, he highlights that while these policies aim to help consumers or increase revenue, they often result in inefficiencies and distortions in the market.

The video and summary are AI generated, so mistakes can occur
This is a video for educational purposes.