So, during times of inflation or deflation, why doesn't the government just set prices? It sounds reasonable, but price ceilings or floors just don't work. Adriene and Jacob explain why. Subsidies, however, are a little different, and...

Here is a great activity that helps students understand markets and price signals. In this activity half the class are buyers and the other half are sellers. The product they are selling is handshakes. There are four rounds and each last...

In this video I explain what happens when the government controls market prices. Price ceilings are a legal maximum price and price floors are a minimum legal price. Make sure that you can draw each of them on a demand and supply graph...