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Price Ceiling

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1.A political leader comes to you and wonders from whom she will receive the most complaints if she institutes a price ceiling when demand is inelastic and supply is elastic. Using the tools of economic, analysis, how do you respond?

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The expert examines the price ceiling of a political leader.

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If the demand is inelastic, the demand curve will be very steep. If the supply is elastic, the supply curve will be flatter. Now if a ceiling ...

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