{"id":207,"date":"2010-10-05T09:18:00","date_gmt":"2010-10-05T15:18:00","guid":{"rendered":"http:\/\/opengecko.com\/economics\/the-effects-of-price-controls\/"},"modified":"2010-11-09T11:04:31","modified_gmt":"2010-11-09T17:04:31","slug":"the-effects-of-price-controls","status":"publish","type":"post","link":"https:\/\/opengecko.com\/geckoview\/economics\/the-effects-of-price-controls\/","title":{"rendered":"The Effects of Price Controls"},"content":{"rendered":"<p>This section of the IB syllabus requires you to understand the following:<\/p>\n<ul>\n<li>Maximum price: causes and consequences <\/li>\n<li>Minimum price: causes and consequences <\/li>\n<li>Price support\/buffer stock schemes <\/li>\n<\/ul>\n<p>Before learning about these concepts, it is first worth being sure of the following concepts:<\/p>\n<ul>\n<li>Consumer Surplus <\/li>\n<li>Producer Surplus <\/li>\n<\/ul>\n<p>The rest of this post gives you links to online resources to help you become an expert in these concepts. Make sure you consult your text book(s) too, to provide further understanding.<\/p>\n<h5>Consumer and Producer Surplus<\/h5>\n<p> <object width=\"480\" height=\"385\"><param name=\"movie\" value=\"http:\/\/www.youtube.com\/v\/FRPQlbRaAok?fs=1&amp;hl=en_GB&amp;rel=0&amp;color1=0x234900&amp;color2=0x4e9e00\"><\/param><param name=\"allowFullScreen\" value=\"true\"><\/param><param name=\"allowscriptaccess\" value=\"always\"><\/param><embed src=\"http:\/\/www.youtube.com\/v\/FRPQlbRaAok?fs=1&amp;hl=en_GB&amp;rel=0&amp;color1=0x234900&amp;color2=0x4e9e00\" type=\"application\/x-shockwave-flash\" allowscriptaccess=\"always\" allowfullscreen=\"true\" width=\"480\" height=\"385\"><\/embed><\/object>  <\/p>\n<p><a href=\"http:\/\/www.youtube.com\/watch?v=qTxniCLYgok\" target=\"_blank\">consumer surplus<\/a> by <a href=\"http:\/\/www.youtube.com\/user\/pajholden\"><strong>pajholden<\/strong><\/a><\/p>\n<p><a href=\"http:\/\/www.youtube.com\/watch?v=MinxczZXtKA&amp;feature=related\">producer surplus<\/a> by <a href=\"http:\/\/www.youtube.com\/user\/pajholden\"><strong>pajholden<\/strong><\/a><\/p>\n<p><a title=\"http:\/\/welkerswikinomics.wetpaint.com\/page\/Consumer+and+Producer+Surplus\" href=\"http:\/\/welkerswikinomics.wetpaint.com\/page\/Consumer+and+Producer+Surplus\">http:\/\/welkerswikinomics.wetpaint.com\/page\/Consumer+and+Producer+Surplus<\/a><\/p>\n<h5>Maximum prices and Minimum prices : causes and consequences<\/h5>\n<p><a title=\"http:\/\/tutor2u.net\/economics\/revision-notes\/as-marketfailure-maximum-prices.html\" href=\"http:\/\/tutor2u.net\/economics\/revision-notes\/as-marketfailure-maximum-prices.html\">http:\/\/tutor2u.net\/economics\/revision-notes\/as-marketfailure-maximum-prices.html<\/a> (although you may not understand all of this yet \u2013 the bits on elasticity for example)<\/p>\n<p><a title=\"http:\/\/tutor2u.net\/economics\/content\/topics\/marketsinaction\/black_markets.htm\" href=\"http:\/\/tutor2u.net\/economics\/content\/topics\/marketsinaction\/black_markets.htm\">http:\/\/tutor2u.net\/economics\/content\/topics\/marketsinaction\/black_markets.htm<\/a><\/p>\n<p> <object width=\"480\" height=\"385\"><param name=\"movie\" value=\"http:\/\/www.youtube.com\/v\/4MMIkkG8pAQ?fs=1&amp;hl=en_GB&amp;rel=0&amp;color1=0x234900&amp;color2=0x4e9e00\"><\/param><param name=\"allowFullScreen\" value=\"true\"><\/param><param name=\"allowscriptaccess\" value=\"always\"><\/param><embed src=\"http:\/\/www.youtube.com\/v\/4MMIkkG8pAQ?fs=1&amp;hl=en_GB&amp;rel=0&amp;color1=0x234900&amp;color2=0x4e9e00\" type=\"application\/x-shockwave-flash\" allowscriptaccess=\"always\" allowfullscreen=\"true\" width=\"480\" height=\"385\"><\/embed><\/object>  <\/p>\n<p><a title=\"http:\/\/www.fmhs.auckland.ac.nz\/faculty\/ltu\/toni_ashton\/supply-demand.swf\" href=\"http:\/\/www.fmhs.auckland.ac.nz\/faculty\/ltu\/toni_ashton\/supply-demand.swf\">http:\/\/www.fmhs.auckland.ac.nz\/faculty\/ltu\/toni_ashton\/supply-demand.swf<\/a> [sections 7 and 8]<\/p>\n<p> <object width=\"480\" height=\"385\"><param name=\"movie\" value=\"http:\/\/www.youtube.com\/v\/Ffcd6Wdkn5w?fs=1&amp;hl=en_GB&amp;rel=0&amp;color1=0x234900&amp;color2=0x4e9e00\"><\/param><param name=\"allowFullScreen\" value=\"true\"><\/param><param name=\"allowscriptaccess\" value=\"always\"><\/param><embed src=\"http:\/\/www.youtube.com\/v\/Ffcd6Wdkn5w?fs=1&amp;hl=en_GB&amp;rel=0&amp;color1=0x234900&amp;color2=0x4e9e00\" type=\"application\/x-shockwave-flash\" allowscriptaccess=\"always\" allowfullscreen=\"true\" width=\"480\" height=\"385\"><\/embed><\/object>  <\/p>\n<p>&#160;<\/p>\n<p> <object width=\"560\" height=\"340\"><param name=\"movie\" value=\"http:\/\/www.youtube.com\/v\/L9P-_OdT1vg?fs=1&amp;hl=en_GB&amp;rel=0&amp;color1=0x234900&amp;color2=0x4e9e00\"><\/param><param name=\"allowFullScreen\" value=\"true\"><\/param><param name=\"allowscriptaccess\" value=\"always\"><\/param><embed src=\"http:\/\/www.youtube.com\/v\/L9P-_OdT1vg?fs=1&amp;hl=en_GB&amp;rel=0&amp;color1=0x234900&amp;color2=0x4e9e00\" type=\"application\/x-shockwave-flash\" allowscriptaccess=\"always\" allowfullscreen=\"true\" width=\"560\" height=\"340\"><\/embed><\/object><object width=\"560\" height=\"340\"><param name=\"movie\" value=\"http:\/\/www.youtube.com\/v\/rU6gXsrs1Pk?fs=1&amp;hl=en_GB&amp;rel=0&amp;color1=0x234900&amp;color2=0x4e9e00\"><\/param><param name=\"allowFullScreen\" value=\"true\"><\/param><param name=\"allowscriptaccess\" value=\"always\"><\/param><embed src=\"http:\/\/www.youtube.com\/v\/rU6gXsrs1Pk?fs=1&amp;hl=en_GB&amp;rel=0&amp;color1=0x234900&amp;color2=0x4e9e00\" type=\"application\/x-shockwave-flash\" allowscriptaccess=\"always\" allowfullscreen=\"true\" width=\"560\" height=\"340\"><\/embed><\/object><object width=\"560\" height=\"340\"><param name=\"movie\" value=\"http:\/\/www.youtube.com\/v\/CJocSeeqRD8?fs=1&amp;hl=en_GB&amp;rel=0&amp;color1=0x234900&amp;color2=0x4e9e00\"><\/param><param name=\"allowFullScreen\" value=\"true\"><\/param><param name=\"allowscriptaccess\" value=\"always\"><\/param><embed src=\"http:\/\/www.youtube.com\/v\/CJocSeeqRD8?fs=1&amp;hl=en_GB&amp;rel=0&amp;color1=0x234900&amp;color2=0x4e9e00\" type=\"application\/x-shockwave-flash\" allowscriptaccess=\"always\" allowfullscreen=\"true\" width=\"560\" height=\"340\"><\/embed><\/object><object width=\"560\" height=\"340\"><param name=\"movie\" value=\"http:\/\/www.youtube.com\/v\/ZJnCxnCtWnI?fs=1&amp;hl=en_GB&amp;rel=0&amp;color1=0x234900&amp;color2=0x4e9e00\"><\/param><param name=\"allowFullScreen\" value=\"true\"><\/param><param name=\"allowscriptaccess\" value=\"always\"><\/param><embed src=\"http:\/\/www.youtube.com\/v\/ZJnCxnCtWnI?fs=1&amp;hl=en_GB&amp;rel=0&amp;color1=0x234900&amp;color2=0x4e9e00\" type=\"application\/x-shockwave-flash\" allowscriptaccess=\"always\" allowfullscreen=\"true\" width=\"560\" height=\"340\"><\/embed><\/object><object width=\"480\" height=\"385\"><param name=\"movie\" value=\"http:\/\/www.youtube.com\/v\/qin2rz8aKsk?fs=1&amp;hl=en_GB&amp;rel=0&amp;color1=0x234900&amp;color2=0x4e9e00\"><\/param><param name=\"allowFullScreen\" value=\"true\"><\/param><param name=\"allowscriptaccess\" value=\"always\"><\/param><embed src=\"http:\/\/www.youtube.com\/v\/qin2rz8aKsk?fs=1&amp;hl=en_GB&amp;rel=0&amp;color1=0x234900&amp;color2=0x4e9e00\" type=\"application\/x-shockwave-flash\" allowscriptaccess=\"always\" allowfullscreen=\"true\" width=\"480\" height=\"385\"><\/embed><\/object>  <\/p>\n<p><a title=\"http:\/\/welkerswikinomics.com\/blog\/2010\/09\/29\/ah-ha-so-that-explains-the-long-lines-at-the-petrol-stations-around-shanghai-this-weekend\/\" href=\"http:\/\/welkerswikinomics.com\/blog\/2010\/09\/29\/ah-ha-so-that-explains-the-long-lines-at-the-petrol-stations-around-shanghai-this-weekend\/\">http:\/\/welkerswikinomics.com\/blog\/2010\/09\/29\/ah-ha-so-that-explains-the-long-lines-at-the-petrol-stations-around-shanghai-this-weekend\/<\/a><\/p>\n<p>&#160;<a title=\"http:\/\/welkerswikinomics.wetpaint.com\/page\/Application%3A+Government-Set+Prices\" href=\"http:\/\/welkerswikinomics.wetpaint.com\/page\/Application%3A+Government-Set+Prices\">http:\/\/welkerswikinomics.wetpaint.com\/page\/Application%3A+Government-Set+Prices<\/a><\/p>\n<h5>Price support\/buffer stock schemes<\/h5>\n<p> <object width=\"480\" height=\"385\"><param name=\"movie\" value=\"http:\/\/www.youtube.com\/v\/B9U3mnoBz8g?fs=1&amp;hl=en_GB&amp;rel=0&amp;color1=0x234900&amp;color2=0x4e9e00\"><\/param><param name=\"allowFullScreen\" value=\"true\"><\/param><param name=\"allowscriptaccess\" value=\"always\"><\/param><embed src=\"http:\/\/www.youtube.com\/v\/B9U3mnoBz8g?fs=1&amp;hl=en_GB&amp;rel=0&amp;color1=0x234900&amp;color2=0x4e9e00\" type=\"application\/x-shockwave-flash\" allowscriptaccess=\"always\" allowfullscreen=\"true\" width=\"480\" height=\"385\"><\/embed><\/object><\/p>\n","protected":false},"excerpt":{"rendered":"<p>This section of the IB syllabus requires you to understand the following: Maximum price: causes and consequences Minimum price: causes and consequences Price support\/buffer stock schemes Before learning about these concepts, it is first worth being sure of the following concepts: Consumer Surplus Producer Surplus The rest of this post gives you links to online&hellip;<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[3,10,106],"tags":[140,138,120,135,43,136,137,139],"class_list":["post-207","post","type-post","status-publish","format-standard","hentry","category-economics","category-ib-economics","category-microeconomics","tag-buffer-stock-schemes","tag-consumer-surplus","tag-market","tag-market-equilibrium","tag-market-price","tag-maximum-price","tag-minimum-price","tag-producer-surplus"],"_links":{"self":[{"href":"https:\/\/opengecko.com\/geckoview\/wp-json\/wp\/v2\/posts\/207","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/opengecko.com\/geckoview\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/opengecko.com\/geckoview\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/opengecko.com\/geckoview\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/opengecko.com\/geckoview\/wp-json\/wp\/v2\/comments?post=207"}],"version-history":[{"count":2,"href":"https:\/\/opengecko.com\/geckoview\/wp-json\/wp\/v2\/posts\/207\/revisions"}],"predecessor-version":[{"id":336,"href":"https:\/\/opengecko.com\/geckoview\/wp-json\/wp\/v2\/posts\/207\/revisions\/336"}],"wp:attachment":[{"href":"https:\/\/opengecko.com\/geckoview\/wp-json\/wp\/v2\/media?parent=207"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/opengecko.com\/geckoview\/wp-json\/wp\/v2\/categories?post=207"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/opengecko.com\/geckoview\/wp-json\/wp\/v2\/tags?post=207"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}