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Given the recent implementation of a price ceiling on masks during the pandemic, it begs the question: Will this intervention actually lead to a shortage or surplus in the market? On one hand, the price ceiling aims to ensure affordability for the general public, yet could it potentially discourage production as profits are capped? Conversely, could the ceiling result in an overabundance as suppliers rush to meet the demand before prices are further adjusted? Understanding the supply and demand dynamics within this scenario is crucial to determining the likely market outcome.
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