Examlex
Which of the following is one of the three basic types of subsidies?
Price Ceiling
A government-imposed limit on how high a price can be charged on a product, intended to protect consumers from high prices, but can lead to shortages.
Shortage/Surplus
A market condition where the quantity demanded exceeds the quantity supplied (shortage) or the quantity supplied exceeds the quantity demanded (surplus).
Price Ceiling
a legally imposed maximum price on goods or services, above which they may not be sold to prevent market prices from rising too high.
Price Floor
A government or regulatory-imposed price control that sets the minimum price at which a good can be sold, often to protect producers or encourage certain activities.
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