You know that price ceilings are socially costly in that they create deadweight losses. But they may
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You know that price ceilings are socially costly in that they create deadweight losses. But they may be costly in other ways, too. Suppose the government imposes a price ceiling of $1 per loaf on bread. Enumerate at least two ways in which this regulation will cause resources to be wasted beyond the deadweight loss it creates.
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Related Book For
Microeconomics
ISBN: 978-1464187025
2nd edition
Authors: Austan Goolsbee, Steven Levitt, Chad Syverson
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