Examlex
Why do alliances form?
Binding Price Floor
A government-imposed price control or limit that sets the lowest price at which a good can be sold, which is above the market equilibrium price, leading to excess supply.
Persistent Surplus
A situation where the supply of a good consistently exceeds the demand for it, often leading to a drop in prices.
Quota Rent
The earnings that accrue to the licensee from the difference between the domestic price and the world price of an imported good when imports are limited by a quota.
Government Imposes
Actions taken by a government to enforce regulations, taxes, or penalties on citizens and businesses.
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