Lower-limit price controls are designed to provide price stability in an inflationary economy.

Question

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Lower-limit price controls set a minimum price for a particular good or service, and as a result, they can lead to shortages and distortions in the market. They are typically used in times of surplus or economic downturn, not in inflationary economies. Upper-limit price controls are often used in inflationary economies to try to keep prices from rising too quickly.

Lower-Limit Price Controls Are Designed to Provide Price Stability in an Inflationary