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Nikolay [14]
2 years ago
8

How do price controls encourage competition?

Social Studies
1 answer:
salantis [7]2 years ago
8 0
Price control is the maximum cost of a good decided by the government. Therefore if a company stays at the price control maximum a competing company may lower the price in order to have the better deal. Another company may lower the price further which creates competition between the businesses. <span />
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