Suppose that the supply curve for a basic commodity is very steep (positively sloped, but almost vertical)
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Question:
Suppose that the supply curve for a basic commodity is very steep (positively sloped, but almost vertical) Would the imposition of a price ceiling on that commodity tend to have a relatively large or a relatively small effect on the quantity sold in the market.
Explain in terms of the demand and supply model.
Related Book For
Finite Mathematics and Its Applications
ISBN: 978-0134768632
12th edition
Authors: Larry J. Goldstein, David I. Schneider, Martha J. Siegel, Steven Hair
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