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Binding Price Ceiling
A legally established maximum price for goods or services that is below the market equilibrium price, leading to shortages.
Binding Price Floor
A government or regulatory-imposed price control that sets a minimum price for a good or service, potentially leading to excess supply if set above the equilibrium price.
Market Demand
The total quantity of a good or service that all consumers in a market are willing and able to purchase at various prices during a specified period.
Binding Price Floor
A government or regulatory-imposed price control that sets the minimum price that can be charged for a good or service, above the equilibrium price, leading to potential surpluses.
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