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Get Pepperdine University Practice Questions And Answers From Lesson I-6: The Market Strikes Back

Skills: Identify the effective and ineffective price ceilings and floors. Compute the shortage and reduced supply from a price ceiling. Identify the inefficiencies from a price ceiling: 1. loss from lowered quantity as some previous consumers no longer consume and some previous sellers no longer sell, 2. an inefficient allocation to consumers (some with higher willingness to pay do not consume while others with lower willingness to pay consume), 3. wasted resources from consumers com.

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