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After Hurricane Andrew hit Florida and Louisiana, consumers expressed outrage at the high prices being charged for chainsaws, generators, and bottled water. A) If governments followed the consumers' demands and imposed price ceilings in these markets, what is the likely result? B) In your answer, define price ceiling and describe its consequences for the prices being charges for those goods, C) Use your graph to assist in describeing the likely unintended effects of such a price control. Be sure that your graph is completely and correctly labeled.

Microeconomics, Economics

  • Category:- Microeconomics
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