Price Ceiling

Recent regulatory blowback against Uber, Lyft and other ridesharing services around the world have reignited the ongoing regulatory policy debate surrounding the ride service in India, Uber’s second biggest market in terms of cities where it operates.

In this video, we explore the fourth unintended consequence of price ceilings: deadweight loss. When prices are controlled, the mutually profitable gains from free trade cannot be fully realized, creating deadweight loss