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Define a price ceiling as a maximum price that a seller is allowed to charge for a good or service. Examples include rent controls and medication.Assume that we are currently at an equilibrium where p=p* ...

Introduction- say what the trade balance is, '  the difference between the value of a country's imports and exports for a given period'.
first way to solve it- devalue the currency like we did in 19...

The correct answer is b).The price mechanism is defined as the interaction between supply and demand for a good, which determines price such that quantities supplied and demanded are equal.An increase in ...

Aggregate demand is the total demand for all goods and services in an economy; it is essentially gross domestic product. Its components are consumption, investment, government spending and net exports (ex...

This question tests the knowledge of students on indirect taxes, demerit goods, negative externalities and market failure. It is an example of a longer answer question, where students would be expected to...