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Assume you are a policy maker in Washington DC. lobbyists for the preschoolers of America h e put pressure on their representatives to so prices on graham crackers. You have been assigned a pnation on a new committee to study the impact of a price ceiling on graham crackers.
your job is to:
a) Illustrate using a fully labeled supply and demand graph (label all the axes and any lines you put in your graph) what such an artificial price looks like.
b) Explain what the results of launch a move are for the graham crackers market. In other words, will there be a Shortage, a surplus, or neither created? Why?
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1. What does it entail?
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