Suppose the government restricts all families to owning only one car. Why would this be allocatively inefficient?

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Suppose the government restricts all families to owning only one car.

Why would this be allocatively inefficient?

Assume one person values one car at $12,000 and would value a second at $7,000. A second person values one car at $5,000. What trade would make both of these persons better off when people are allowed to own more than one car?

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Economics Barrons Business Review Series

ISBN: 9781438008776

6th Edition

Authors: Walter J. Wessels

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Question Posted: Feb 18, 2024 04:01 AM

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Suppose the government restricts all families to owning only one car. Why would this be allocatively inefficient?

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Suppose Owner A values his car at 5000 Owner B values ...View the full answer

Economics Barrons Business Review Series

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