Fresh broccoli is really good for you, and the Surgeon General of the United States wants people to eat more of it. “People would eat more broccoli if it didn’t cost so much,” the Surgeon General says. So the Surgeon General proposes placing a price ceiling on fresh broccoli of $1 per pound, which is well below the market price of about $2 per pound. Will the price ceiling on broccoli achieve the Surgeon General’s goal of increasing the amount of broccoli consumed? Explain why or why not. (A properly drawn and labeled graph likely will improve your answer, but a graph is not necessary for full credit on this question.
Fresh broccoli is really good for you, and the Surgeon General of the United States wants people to eat more of it. “People would eat more broccoli if it didn’t cost so much,” the Surgeon General says. So the Surgeon General proposes placing a price ceiling on fresh broccoli of $1 per pound, which is well below the market price of about $2 per pound. Will the price ceiling on broccoli achieve the Surgeon General’s goal of increasing the amount of broccoli consumed? Explain why or why not. (A properly drawn and labeled graph likely will improve your answer, but a graph is not necessary for full credit on this question.
Chapter4: Markets In Action
Section: Chapter Questions
Problem 12SQ
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Fresh broccoli is really good for you, and the Surgeon General of the United States wants people to eat more of it. “People would eat more broccoli if it didn’t cost so much,” the Surgeon General says. So the Surgeon General proposes placing a
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ISBN:
9781337617383
Author:
Roger A. Arnold
Publisher:
Cengage Learning
