Chapter 9, Problem 20AA

To determine

To state: The impact of deregulation on an industry.

Answer to Problem 20AA

Deregulation allow new innovation to enter the market promoting economic growth.

Explanation of Solution

If deregulation happened in electricity industry, it would increase the options for the consumers which will encourage the suppliers to provide better services at a lower price. This will help in preventing unfair trade practices that is caused by government monopoly. Deregulation helps in increasing investment opportunities leading to a better economic growth.

Economics Concept Introduction

Introduction: Deregulation is referred as the removal of government rules from a specific product or service.