In the following tutorial you will explore the consequences of the government interfering with how the free market operates. Specifically you will look at the results when the government tries to help sellers by forcing a legal price floor on a particular commodity (sellers cannot sell for less than this amount), how the government tries to accomplish the same objective when it sets a target price, what happens to unskilled jobs when the government sets a minimum wage, and what results when the government tries to help consumers by setting a legal price ceiling (no seller can charge a higher price than this amount) on a service or commodity.
Click on each of the blue numbered circles on the following graphs to see the explanations. The sequence number in those numbered circles follows the appropriate steps in analyzing that type of graph.
If you have any questions, please contact your instructor.