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When the Government Sets a Maximum Price That Can Be

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When the government sets a maximum price that can be charged for a good or service, it creates


Definitions:

Existing Contracts

Legal agreements that are currently in force between parties, outlining rights and obligations of those parties.

Federalism

A system of government in which power is divided between a central authority and constituent political units.

Govern Authority

Pertains to the legal power or right held by a government body to regulate, control, or manage individuals, entities, or property.

Supremacy Clause

A provision in the U.S. Constitution stating that federal law takes precedence over state laws.

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