Question
A price ceiling would create a shortage of gasoline, as you correctly explained. If prices were free to adjust, they would increase, you are right.
A price ceiling would create a shortage of gasoline, as you correctly explained. If prices were free to adjust, they would increase, you are right. However, since there is a price ceiling, prices would not be able to increase.
What do you think would happen in such a situation?
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Using R For Econometrics
Authors: Florian Heiss
1st Edition
1523285133, 9781523285136
