So riding to the rescue came DC Democrats – with Obamacare, and its fairy dust promises of lower prices.
In the individual market, Care Connect asked for and received a 29 percent increase.
It ensures prices stay high so that product can continue to be made.
A price floor set above the market equilibrium price has several side-effects.
By contrast, in the second graph, the dashed green line represents a price floor set above the free-market price.
In this case, the price floor has a measurable impact on the market.Consumers find they must now pay a higher price for the same product.