Explain why it is important that prices are flexible in our economy. What are the implications if the government started to control prices for products, how would this influence buying?

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Q: If wage rates are not flexible, can the economy be self-regulating?

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A: Hi Student, Thanks or posting the question. As per the guideline, we are providing answer for the…

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Q: what a price is. Tell why prices are important to the economy. Then, give one consequence of a price…

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A: Real GDP: It is used to measure the value of economic output that is adjusted for price changes.

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Q: Explain why it's important that prices are flexible in our economy.

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Price Ceilings and Price Floors

Price Ceilings and Price Floors strategy is used by the Government to control the prices of certain goods and services in the market. This method helps the Government to protect the interests of both buyers and suppliers in difficult economic times.