Do minimum and maximum prices shift demand or supply -a level economics Watch

youreanutter
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to create new equilibrium
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Senpai
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I'd say both? Minimum prices encourage demand as stated by the law of demand. If prices are cheaper more consumers would want to buy. However, if prices are low then supplies are less likely to supply to the market as they wont gain as much profit. You could say that demand shifts out for minimum prices and supply shifts inwards on the supply/demand curve. You could also say the because demand is increasing, suppliers are more likely to supply thus the supply curve shifts outwards as well. Maximum prices shift demand inwards and supply outwards, every change on the curve creates a new equilibrium because of either excess demand or excess supply.

Did this answer your question or did I completely go off tangent haha
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