Question:

What is lthe likely effect of imposing price controls when demand exceeds supply?

by  |  earlier

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A diagram of Demand and supply to illustrate the concept of excess demand will greatly help.

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  1. I bet it would ( making a diagram)


  2. price controls would increase the hardship of those on the demand side, because some of them would be left unable to purchase a supply which was bought up by luckier others.

    it would also serve to have some of the supply be pulled from the market.

    we can't do diagrams on this Y!A

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