Suppose one knows two facts: first, the market for prescription drugs - 11557

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Suppose one knows two facts: first, the market for prescription drugs experiences chronic shortages and second, government sets the price for prescription drugs. One can conclude that the

 

  •  government has set the price too high.
  •  government has set the price above the equilibrium price.
  •  buyers are hoarding prescription drugs.
  •  government has set the price below the equilibrium price.  

 

Solution Description

 

Suppose one knows two facts: first, the market for prescription drugs experiences chronic shortages and second, government sets the price for prescription drugs. One can conclude that