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Eid-ul-Adha is right around the corner. Every year End largely affects the commodity market. Suppose, Government has imposed a maximum selling price of per kg onion at 50 taka, whereas the market price was 70 taka per kg before the announcement  a. explain the effects of this ceiling price on the

Eid-ul-Adha is right around the corner. Every year End largely affects the commodity market. Suppose, Government has imposed a maximum selling price of per kg onion at 50 taka, whereas the market price was 70 taka per kg before the announcement  a. explain the effects of this ceiling price on the

Intermediate Algebra
Intermediate Algebra
19th Edition
ISBN:9780998625720
Author:Lynn Marecek
Publisher:Lynn Marecek
Chapter4: Systems Of Linear Equations
Section4.3: Solve Mixture Applications With Systems Of Equations
Problem 4.60TI: The manufacturer of a weight training bench spends $120 to build each bench and sells them for $170....
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 Eid-ul-Adha is right around the corner. Every year End largely affects the commodity market. Suppose, Government has imposed a maximum selling price of per kg onion at 50 taka, whereas the market price was 70 taka per kg before the announcement 

a. explain the effects of this ceiling price on the demand and supply of the onion market. In your graph , show the effects of the price changes on quantity demanded and quantity supplied. Does it create excess  supply or excess demand? What will happen to the market price? 

 b. In the above situation, who (buyers or sellers) is going to get the benefit from such policy? Explain it in your own words (due: use a graph where a Price Ceiling is binding) 

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