In the late eighteenth century the price of bread in new, Business Economics

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In the late eighteenth century the price of bread in new

In the late eighteenth century, the price of bread in New York City was controlled, set at a predetermined price above the market price.

Draw a diagram showing the effect of the policy. Did the policy act as a price ceiling or a price floor?

What kinds of inefficiencies were likely to have arisen when the controlled price of bread was above the market price? Explain in detail.

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