A some buyers who want to buy at the controlled price are unable to find a seller willing to sell at that price b the quantity of the good transacted is less than the equilibrium quantity transacted c the buyers incur additional search costs looking for the scarce good. Cause surpluses and shortages to persist since price cannot adjust to the market equilibrium price. It is legal minimum price set by the government on particular goods and services in order to prevent producers from being paid very less price.
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