Chapter 3 - Price Controls 

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Description and Tags

Macroeconomics

Price Controls

Economics

Price fluctuations

Supply and demand

Shortage

Consumers

Price controlled goods

Price Phenomenon

Scarcity

Hoarding

Free market conditions

Transactions

Black market

Surplus

Inflation

Non price rationing

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5 Terms

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Price Controls

are imposed in order to keep prices from rising to the levels that they would reach in response to supply and demand.

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Prices rise

Happens when the amount demanded exceeds the amount supplied at existing prices.

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Prices fall

Happens when the amount supplied exceeds the amount demanded at existing prices.

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Price Phenomenon

Shortage can be defined as

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Hoarding

Individuals keeping a larger inventory of the price controlled goods than they would ordinarily under free market conditions, because of the uncertainty of being able to find it in future.