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    Macroeconomics Principles Applications
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    Exam 4: Demand, Supply, and Market Equilibrium
  5. Question
    Governments Sometime Create an Excess Demand for a Product by Setting
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Governments Sometime Create an Excess Demand for a Product by Setting

Question 23

Question 23

True/False

Governments sometime create an excess demand for a product by setting a maximum price that is less than the equilibrium price, resulting in a permanent excess demand for the product. This is known as a price floor.

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