*5.2 After a severe storm damaged the water supply infrastructure in a city in Europe, the price...

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*5.2 After a severe storm damaged the water supply infrastructure in a city in Europe, the price of drinking water increased sharply in the city. The mayor announced that she would investigate price gouging–

charging “too much”—and several members of the local council called for price controls on bottled water. What would have been the likely effect of such a law had it been passed?

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Managerial Economics And Strategy

ISBN: 9780135640944

2nd Global Edition

Authors: Jeffrey M. Perloff, James A. Brander

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