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hey everyone Im mr. Willis and you will love economics [Music] [Music] in a free and competitive market voluntary exchange sets a price level and quantity of output at market equilibrium were both consumers and firms can satisfy their incentive driven goals when fluctuations and changes occur the natural market forces of voluntary exchange also known as the invisible hand allow the market to fix itself through changes in price and quantity without outside influence or government intervention however when social goals change government can intervene in the market to manipulate price and quantity to meet social needs there are several ways in which the government can satisfy social goals through market intervention and this video will analyze three price controls quotas and per unit subsidies price controls are legal limits on the price of a good or service in the product market there are two types of price controls price ceilings and price floors a price ceiling is a maximum legal pr
