After a long public discussion about goods and services that should be provided to the population, the government decides that a certain scarce good should be provided to anyone who wants it at no cost. As part of this effort, the government sets a price of zero for that good and passes a law making it illegal to transact the good at any price. However, people can give the good away. Assuming that this good is highly desirable for segments of the population, what do you think the effect of this law will most likely have on the market? What would happen if this particular law was removed after being implemented?
After a long public discussion about goods and services that should be provided to the population, the government decides that a certain scarce good should be provided to anyone who wants it at no cost. As part of this effort, the government sets a price of zero for that good and passes a law making it illegal to transact the good at any price. However, people can give the good away. Assuming that this good is highly desirable for segments of the population, what do you think the effect of this law will most likely have on the market? What would happen if this particular law was removed after being implemented?
Chapter1: Making Economics Decisions
Section: Chapter Questions
Problem 1QTC
Related questions
Question
After a long public discussion about goods and services that should be provided to the population, the government decides that a certain scarce good should be provided to anyone who wants it at no cost.
As part of this effort, the government sets a
Assuming that this good is highly desirable for segments of the population, what do you think the effect of this law will most likely have on the market?
What would happen if this particular law was removed after being implemented?
Expert Solution
This question has been solved!
Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.
This is a popular solution!
Trending now
This is a popular solution!
Step by step
Solved in 2 steps
Knowledge Booster
Learn more about
Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, economics and related others by exploring similar questions and additional content below.Recommended textbooks for you
Principles of Economics (12th Edition)
Economics
ISBN:
9780134078779
Author:
Karl E. Case, Ray C. Fair, Sharon E. Oster
Publisher:
PEARSON
Engineering Economy (17th Edition)
Economics
ISBN:
9780134870069
Author:
William G. Sullivan, Elin M. Wicks, C. Patrick Koelling
Publisher:
PEARSON
Principles of Economics (12th Edition)
Economics
ISBN:
9780134078779
Author:
Karl E. Case, Ray C. Fair, Sharon E. Oster
Publisher:
PEARSON
Engineering Economy (17th Edition)
Economics
ISBN:
9780134870069
Author:
William G. Sullivan, Elin M. Wicks, C. Patrick Koelling
Publisher:
PEARSON
Principles of Economics (MindTap Course List)
Economics
ISBN:
9781305585126
Author:
N. Gregory Mankiw
Publisher:
Cengage Learning
Managerial Economics: A Problem Solving Approach
Economics
ISBN:
9781337106665
Author:
Luke M. Froeb, Brian T. McCann, Michael R. Ward, Mike Shor
Publisher:
Cengage Learning
Managerial Economics & Business Strategy (Mcgraw-…
Economics
ISBN:
9781259290619
Author:
Michael Baye, Jeff Prince
Publisher:
McGraw-Hill Education