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In John Stossel's article, "In Praise of Price Gouging", Stossel argues that a law banning price gouging would result in a two-block line for gasoline after Superstorm Sandy.
a. Explain in words and using a graph why the ban on price gouging may cause a long line for gasoline. Label the axis and all the lines. Be precise.
b. Has supply changed, demand changed, or both? Explain.
c. Using two graphs, show consumer surplus before and after government intervention. Be precise. Label the axis and all the lines.
Select the production possibilities curve for an economy with 42 units of labor
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how does the concept of possibility production curve aplicable in real life?
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