Suppose that the competitive equilibrium shown in Figure 10.3 were regarded as unfair because the relative price

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Suppose that the competitive equilibrium shown in Figure 10.3 were regarded as "unfair" because the relative price of X (an important necessity) is "too high." What would be the result of passing a law requiring that PX/PY be lower?
Figure 10.3
How Perfectly Competitive Prices Bring about Efficiency
Suppose that the competitive equilibrium shown in Figure 10.3 were
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Intermediate Microeconomics and Its Application

ISBN: 978-1133189039

12th edition

Authors: Walter Nicholson, Christopher M. Snyder

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