Question
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.)
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