Practice Problem: The Welfare Implications of a Price Floor

Hi everyone in this video I’m going to go through a practice problem, which looks at evaluating the welfare effects of a price floor. Here is the question:

Market demand is given by the equation Qd=1220 - 4P and market supply is given by the equation Qs=P. What are the welfare implications if a price floor equal to PF=255 is placed on the market?

There are some other videos that might help you here:

On Consumer Surplus: https://youtu.be/mc8vri4_A4M
On Producer Surplus: https://youtu.be/CvMm5-LQNAk

Chapters:

0:00 Introduction
0:46 Finding Initial Equailibrium
3:33 Finding Initial Welfare
5:01 Imposing Price Floor
7:48 Comparison of Welfare
8:27 Dead Weight Loss

Видео Practice Problem: The Welfare Implications of a Price Floor канала econhelp