Asked by cesar
In a free market system, price control can include both a floor and a
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GPT-5 mini
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Ceiling.
A price floor sets a minimum legal price (e.g., minimum wage) and can create surpluses if above equilibrium; a price ceiling sets a maximum legal price (e.g., rent control) and can create shortages if below equilibrium.
A price floor sets a minimum legal price (e.g., minimum wage) and can create surpluses if above equilibrium; a price ceiling sets a maximum legal price (e.g., rent control) and can create shortages if below equilibrium.
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