8. "The most sensible response to IO percent inflation is selective controls over the prices of automobiles, steel, aluminum, processed foods, hospital room rates, physicians'

fees, and the products and services of other industries in which concentrated market power is signficant."

(a) Are price increases in the above industries the cause of the IO percent inflation?

Explain.

(b) Do firms with monopoly power cause inflation? Why or why not?

(c) Indicate why you either support or oppose the view stated above.