A student makes the following argument a price floor


Question: A student makes the following argument: A price floor reduces the amount of a product that consumers buy because it keeps the price above the competitive market equilibrium. A price ceiling, though, increases the amount of a product that consumers buy because it keeps the price below the competitive market equilibrium. Do you agree with the student's reasoning? Use a demand and supply graph to illustrate your answer.

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Microeconomics: A student makes the following argument a price floor
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