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3.1.3 controlling prices in markets
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Why governments control prices

Why governments control prices

A price control is a legally imposed maximum or minimum price. A binding price control prevents the market price from settling at its free-market equilibrium, while a non-binding price control leaves the equilibrium price unchanged. Governments intervene when they judge the equilibrium price to be too high for consumers or too low for producers.

3.1.3 controlling prices in markets Lesson

  1. Intl A Level
  2. /Economics
  3. /3.1.3 controlling prices in markets

Step-by-step lessons on CIE Intl A Level Economics 3.1.3 controlling prices in markets. Each one builds up to exam-style questions.

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