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How do price ceilings and price floors restrict the free exchange of prices?

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User Cyao
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1 Answer

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Price ceilings are the limit of the prices to go high above the given ceiling while the price floor limit the prices to go below the given amount. The two restrict the free exchange of prices by putting a range of prices allowable only for a certain product. The prices are already limited between the price floor and the price ceiling.
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User Kaushal Khamar
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