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Price Floor
A minimum price set by the government for certain goods and services, which cannot legally be lowered.
Temporary Surplus
A short-term situation where the supply of a product or service exceeds its demand, often leading to price reductions.
Permanent Surplus
A situation where a country consistently exports more goods and services than it imports, leading to a positive balance of trade over time.
Equilibrium Price
The price at which the quantity of a product or service demanded by consumers matches the quantity supplied by producers, leading to a balance in the market.
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