Suppose the government regulates the price of a good to be no lower than some minimum level.

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Suppose the government regulates the price of a good to be no lower than some minimum level. Can such a minimum price make producers as a whole worse off? Explain.

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Microeconomics

ISBN: 978-0132857123

8th edition

Authors: Robert Pindyck, Daniel Rubinfeld

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Question Posted: Dec 22, 2015 02:24 AM

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Suppose the government regulates the price of a good to be no lower than some minimum level.

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With a minimum price set above the marketclearing price some consumer surplus is transferre...View the full answer

Microeconomics

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