Studied by 3 peoplePrice Controls
are imposed in order to keep prices from rising to the levels that they would reach in response to supply and demand.
Prices rise
Happens when the amount demanded exceeds the amount supplied at existing prices.
Prices fall
Happens when the amount supplied exceeds the amount demanded at existing prices.
Price Phenomenon
Shortage can be defined as
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.
Note 
Flashcard (50)