Principles of Economics: Microeconomics - Price Controls and Communism

What happens when the prices of all goods are controlled? Under communism, or a command economy, this is exactly what occurs. As a result, all of the effects of price controls become amplified: there are even more shortages or surpluses of goods, lower product quality, longer lines and more search costs, more losses in gains from trade, and more misallocation of resources. As we have seen, universal price controls destroy market coordination and create a system of planned chaos in which it becomes more difficult for consumers to get the goods and services they want and need. Try our interactive practices! Test yourself on price ceilings: https://mru.io/ds3 Test yourself on price floors: https://mru.io/amn Microeconomics Course: https://mru.io/ab5 Next video: https://mru.io/cmo Help us caption & translate this video! http://amara.org/v/GLJd/ 00:00 What do price controls look like in a planned economy? 00:48 Effects of price controls (ceilings and floors) 01:10 Communism, a system of universal price controls 03:02 "Planned" chaos vs. market coordination