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Discuss the Inefficiencies Created by a Price Floor

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Discuss the inefficiencies created by a price floor.


Definitions:

Credit

An accounting entry that increases a liability or equity account or decreases an asset or expense account.

Unearned Rent

Income received by an entity for rent that has not yet been earned, typically because the period of tenancy has not yet occurred.

Accounts Payable

Liability accounts listing the amounts a company owes to suppliers for goods or services received on credit.

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