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Price Ceiling
A legally imposed maximum price on goods or services, intended to keep prices affordable for consumers.
Shortage/Surplus
A surplus is the opposite of a shortage, occurring when the supply of a product or service exceeds its demand in a market.
Price Floor
A government- or authority-imposed minimum price set above the equilibrium price, preventing the market price from falling below a certain level.
Market Equilibrium
A situation in a market where the quantity supplied equals the quantity demanded at a certain price point.
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