Micro 2.8 Government Controls

[@glennwatson3313]

I have never seen a price floor graphed below equilibrium or a price ceiling graphed above equilibrium.

[@ReviewEcon]

That's when it would be ineffective or non-binding. The market just seeks and reaches the equilibrium. The government control will have no effect then. 2015 micro FRQ #3 part C has a price ceiling below equilibrium. There are also some MC questions with infective floors/ceilings. My goal is to make sure kids have a fighting chance to answer every question they've ever asked. 🤞

[@superfly7252]

phillip here. i must say compared to my teacher this is like filling a bucket with water! very clear and gets the point across thank you guy.

[@Yes-cm1ph]

hey philip. My name is Bill Finpul. you took those word out of my mouth!😂 couldn’t have said it bett

[@ReviewEcon]

You're very welcome! I'm so glad you found my video helpful. Good luck with your exams!

[@superfly7252]

@@ReviewEconthanks! i’ll definitely be back in may for the ap exams 😂 -phillip queue

[@desertslimes7765]

Hi, I love your content but the only thing I found unclear is where to put the Pb and Ps. I know Pe is the equillibrium price were MB=MC, but as for Pb and Ps, what is the rule to know where to put them (whether it goes above Pe or bellow)? Sorry if the question is unclear.

[@ReviewEcon]

When supply shifts left, the vertical distance of the tax, the new equilibrium will be Pb (the price buyers pay). The price sellers receive is found by dropping down to the original supply curve then finding that price on the Y axis. Also, the new equilibrium is the after tax quantity (Qt). I hope that helps!

[@Mouath99]

how to get government expenditure?

[@ReviewEcon]

Do you mean for a subsidy? Vertical distance of the subsidy shift, times the quantity after the subsidy. I hope that helps!

[@Yes-cm1ph]

folk i must say, the only youtube that make sense. the others are atrocity!🫨 good grief

[@ReviewEcon]

You're too kind! Thank you! 😄