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Suppose that the government establishes a price ceiling of $3.70 for wheat. What might prompt the government to establish this price ceiling? describe carefully the main effects. Demonstrate your answer graphically. Next, suppose that the government establishes a price floor of $4.60 for wheat. What will be the main effects of this price floor? Demonstrate your answer graphically.

Microeconomics, Economics

  • Category:- Microeconomics
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