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Government should implement price controls (e.g., price ceilings on necessity goods) in the wake of a crisis. 1) Discuss what constitute a 'fair' price increase
Government should implement price controls (e.g., price ceilings on necessity goods) in the wake of a crisis.
1) Discuss what constitute a 'fair' price increase at a time of shortage.
2) If the price is not allowed to rise to its equilibrium level, what system of rationing should be used? How should sellers allocate the good amongst potential customers?
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