1. Using the concept of elasticity explain why the impact of a maximum price, such as the...
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1. Using the concept of elasticity explain why the impact of a maximum price, such as the one introduced by the FCA, may be different in the economic long run as opposed to the economic short run.
2. Discuss the economic rationale for introducing a maximum price into the market for payday lending.
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1 See Figure 32 in the main text In the short run demand and supply will tend to be less elastic ie similar to D 1 and S 1 It will take time for borro...View the full answer
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