Please indicate whether the statement is true, false, or uncertain for each of the following two statements, and explain why. If the statement has two parts, or partly true and partly wrong, explain both. The evaluation of your answer focuses on the quality of your explanation. Given the following information: A fundamental feature of a market economy is that no consumer is forced to buy a specific number of units of a product—each consumer is free to decide not to buy if the consumer thinks that the price is too high. Statement to evaluate: This fundamental feature substantially weakens the economic case for the government to regulate the price charged by a monopoly for its product. [In your answer, assume that there are no externalities from this product, and there is no asymmetric information.]
Please indicate whether the statement is true, false, or uncertain for each of the following two statements, and explain why. If the statement has two parts, or partly true and partly wrong, explain both. The evaluation of your answer focuses on the quality of your explanation.
Given the following information: A fundamental feature of a market economy is that no consumer is forced to buy a specific number of units of a product—each consumer is free to decide not to buy if the consumer thinks that the price is too high.
Statement to evaluate: This fundamental feature substantially weakens the economic case for the government to regulate the price charged by a
[In your answer, assume that there are no externalities from this product, and there is no asymmetric information.]
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