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Price Ceiling or Price Floor

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Can you please provide an example of the market where government has imposed a price ceiling or a price floor and use demand and supply analysis to explain the consequence on that market.

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The solution determines the price ceiling or price floor.

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Apartments under rent control are a classic example of a price ceiling. Because people desire these apartments, which are few in number, they tend to pass them along to friends and family members. Befriending people just because of their apartment is common practice. Clearly this allocation method doesn't favor those who most need the lower cost ...

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