Price ceiling is legally determined maximum price

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A price ceiling is a legally determined maximum price that sellers may charge for a good or service. A price floor is a legally determined minimum price that sellers may receive for a product or service. When a competitive equilibrium is achieved in a market, the total net benefit to society is maximized. To be binding, a price floor must lie above the free-market equilibrium price and a price ceiling below equilibrium. Explain how both renters and landlords could be either winners or losers with the imposition of rent control.

Reference no: EM133214367

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