# Economic Policy ## Market Intervention - Price Ceiling - Price control decreases the supply, but increases the demand. Thus shortage is created. - Market will eventually find a way to get rid of the line, but not in the most efficient way. - Lower quality product - Charge an extra deposit - Black market - Price Floor - Minimum wage increases unemployment. Perhaps the increased wage comes at the expense of the people leaving the industry? - Destroying the corn and milk to maintain a high price, so that agriculture stays in the US.