When Hugo Chavez became the president of Venezuela in 1999, he promised his people lower food prices.

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When Hugo Chavez became the president of Venezuela in 1999, he promised his people lower food prices. He felt this would ensure that everyone would have enough to eat, and farmers and other food producers would not be lining their pockets with profits made off the poor. Chavez set a price ceiling on certain commodities and quotas on the amount that each producer had to produce. What does the demand and supply model predict would happen as a result of Chavez' policies?

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