Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Catfish farming is an important industry in Mississippi and both the State's senators are trying to do whatever they can to boost the price of

Catfish farming is an important industry in Mississippi and both the State's senators are trying to do whatever they can to boost the price of catfish. Suppose they proposed a rule requiring all Federal facilities with food service (office buildings, prisons, military bases etc.) to put catfish on the menu at least once a week. During hearings on the bill a consultant made the following claim "this will be a substantial increase in the demand for catfish that will raise the price farmers receive, resulting in a substantial long-term increase in the farmer's income". Even if he is right about the impact on demand, he may be wrong about the long-term impact. Explain (assume that the catfish farming business is perfectly competitive.)

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

E Marketing

Authors: Raymond Frost

7th Edition INTERNATIONAL EDITION

0132953443, 978-0132953443

More Books

Students also viewed these Economics questions

Question

13. Give four examples of psychological Maginot lines.

Answered: 1 week ago