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A price floor reduces the amount of a product that consumers buy because it keeps the price above the competitive market equilibrium. A price ceiling,
A price floor reduces the amount of a product that consumers buy because it keeps the price above the competitive market equilibrium. A price ceiling, on the other hand, increases the amount of product that consumers buy because it keeps the price below the competitive market equilibrium. Do you agree with the student's reasoning for both
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Foundations of Macroeconomics
Authors: Robin Bade, Michael Parkin
8th edition
134492005, 978-0134492001
