Minimum Prices as a form of Government Intervention I A Level and IB Economics

​In this revision video we provide an update on the use of minimum prices as a form of government intervention.

Government price controls are situations where the government sets prices for goods and services.

Minimum prices are legally-imposed price floors and are most associated with minimum hourly wage rates in the labour market or guaranteed price support schemes for farmers and other producers. They might also be a legal minimum retail price such as the minimum unit alcohol price introduced into Scotland.

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