Explain a model based on government regulation price


Explain a model based on government regulation (price ceiling or floor), a cartel, or a monopoly. Discuss

1) How price is determined;

2) How sustainable you expect the pricing to be over time;

3) What you expect to happen in the long run to output and pricing

4) What happens if the market price is below the government’s price ceiling?

5) In your model what can happen to overcome the pricing scheme in (A)?

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Microeconomics: Explain a model based on government regulation price
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