What specific economic term describes government-mandated legal minimums or maximums set for the prices of goods or services?
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Price controls
Price ceilings (maximums) are often used for rent control, while price floors (minimums) are commonly seen in the form of minimum wage laws. While intended to help the public, they can sometimes lead to shortages or surpluses if the prices are set too far from market reality.
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- What term is used for legal minimums or maximums that a government sets for the prices of goods and services?