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Unformatted text preview: efficient and gives everyone in the market what seems to be a fair chance since it regulates the price. The graph also shows that it is binding and effective because of the price ceiling. A price ceiling is considered effective and bindings when it is positioned bellow the equilibrium. This graph may on one hand be efficient, but that does not mean it is equitable. Rent control leaves room for nepotism and creates a shortage, a shortage is when the amount supplied falls short of the quantity demanded by the market, and because of all this the graph may be considered efficient, but it is not equitable....
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- Fall '11
- Economics, English-language films, one hand, LINDSEY BARNETT