The Effect of a Price Support

This video discusses the effect of a price support. A price support consists of a price floor and a guarantee from the government to purchase any excess supply created by the price floor. A price support increases the producer surplus, but results in a net deadweight loss because the cost to the government in purchasing the excess supply outweighs the gain to producers. Thus, a price support reduces the social surplus.-
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[@rebekabandara8136]

What an explanation....superb !!!

[@satarnaghizadeh6623]

wow!
just wow

[@kuogeashraajasivam9085]

Great explanation

[@henrikvree6734]

How would u calculate the deadweight loss for this example ?

[@priyadugar6944]

Henrik Vree thats 15 billion- 2.5125 billion

[@hkh117]

thank you!

[@zaeemsahrudeen9572]

Thankyou. 🖤

[@tanyen8177]

Thanks sir!

[@Edspira]

You're welcome. Best of luck in your studies!

[@jorgegonzalez-ec5fl]

Great explanation