Economics (7th Edition) (What's New in Economics)
Economics (7th Edition) (What's New in Economics)
7th Edition
ISBN: 9780134738321
Author: R. Glenn Hubbard, Anthony Patrick O'Brien
Publisher: PEARSON
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Chapter 4, Problem 4.3.2RQ
To determine

The impact of price floor and price ceiling on producers.

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Due to the government's program for developing alternative fuels, the demand for ethanol has increased dramatically. Ethanol is made from corn. Corn is also used as a feed for hogs. Simultaneously, many more cases of mad cow disease have been discovered in the United States.      Assume that pork and beef are substitutes in consumption, but not in production. As a result of these two changes, what will happen to the price and output of pork? Briefly explain.
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