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umka2103 [35]
2 years ago
5

Explain why the government imposes price floors and price ceilings in certain markets.

Social Studies
1 answer:
mina [271]2 years ago
4 0
Price ceilings prevent a price from rising above a certain level. When a price ceiling is set below the equilibrium price, quantity demanded will exceed quantity supplied, and excess demand or shortages will result. Price floors prevent a price from falling below a certain level.
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