Rent Control, Deadweight Loss, Minimum Wage, and Price Floors
Completion requirements
The efficiency approach to price controls might be easier to understand
if we use familiar examples, such as rent controls and minimum wage.
Watch these two videos for an economic efficiency analysis of the
adoption of a maximum price on rental housing (price ceiling) and the
implementation of a minimum wage (price floor). You can use the minimum
wage video to review the main features of the labor market from Unit 2.
- Video 1: Rent control and deadweight loss
- Video 2: Minimum wage and price floors
Source: Khan Academy, https://www.youtube.com/watch?v=8U8egQjcPaI, https://www.youtube.com/watch?v=j0c2vmFGbtk
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Last modified: Monday, 10 March 2025, 11:06 AM