Question: On December 31, 1776, Rhode Island established wage controls to limit wages to 70 a day for carpenters and 42 a day for tailors. a.

On December 31, 1776, Rhode Island established wage controls to limit wages to 70¢ a day for carpenters and 42¢ a day for tailors.
a. Are these wage controls a price ceiling or a price floor? Why might they have been introduced?
b. If these wage controls are effective, would you expect to see a surplus or a shortage of carpenters and tailors?

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