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    Principles of Microeconomics
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    Exam 6: Price Ceilings and Price Floors
  5. Question
    Explain Why a Price Ceiling, When Applied to a Market
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Explain Why a Price Ceiling, When Applied to a Market

Question 112

Question 112

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Explain why a price ceiling, when applied to a market, inevitably generates chronic excess demand for the good.

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A price ceiling sets the allowable price...

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