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Price Floors and Ceilings

Price floors, such as government support for farmers, set price minimums, while price ceilings, like rent control, set a maximum price. Both can hold prices away from equilibrium, and make demand unequal to supply. Price regulations impose costs on consumers or producers, and create inefficiency.

English
  • Runtime 30 minutes
  • Created March 23, 2016 by
    Administrator admin
  • Modified March 23, 2016 by
    Administrator admin