Suppose the government regulates the price of a good to be


1. Suppose the government regulates the price of a good to be no lower than some minimum level. Can such a minimum price make producers as a whole worse off? Explain.

2. How are production limits used in practice to raise the prices of the following goods or services:

(a) taxi rides,

(b) drinks in a restaurant or bar,

(c) wheat or corn?

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Microeconomics: Suppose the government regulates the price of a good to be
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