why does government imposes price celling and price floor on certain commodities ? who are the beneficiary of both
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26
Answer:
Government imposes a price ceiling to control the maximum prices that can be charged by suppliers for the commodity. This is done to make commodities affordable to the general public. However, prolonged application of a price ceiling can lead to black marketing and unrest in the supply side.
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Explanation:
Price floors and Price ceiling are government imposed minimums and maximums on the Price of certain goods or services. It is usually done to protect buyers and suppliers or manage scarce resources during difficulties economic times.
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