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Answer to Question #216899 in Economics for Khwisti
Question #216899
(a) Market systems may not allocate resources efficiently for many reasons. Governments intervene in order to correct such market failures. Imposition of price controls is one of such interventions. Using relevant diagrams, discuss the use of (i) maximum prices, and (ii) minimum price controls in the markets and the consequences of each approach to the market and the society.
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