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4.2 Government Intervention in Market Prices: Price Floors and Price Ceilings – BUS 400 Business Economics
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What is a price floor and what is its effect in terms of quantity demanded and quantity supplied in a market? Use a diagram to explain any changes in economic surplus and
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When a government sets a price floor which is below the equilibrium price A) a shortage will develop. B) a price ceiling will follow. C) a surplus will develop. D) the equilibrium
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