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Villerys39 Villerys39
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5 years ago
Suppose that a regulated industry experiences an increase in the price of inputs used to produce the good. According to the share-the-gains, share-the-pain theory, we would expect

• no increase in price.

• prices to increase by a little immediately and profits to decrease by a lot.

• there will be some increase in price but not immediately.

• a quick increase in price maintains profits in the industry.
Textbook 
Economics Today: The Micro View

Economics Today: The Micro View


Edition: 19th
Author:
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sadeensadeen
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5 years ago
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Villerys39 Author
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5 years ago
This site is awesome!
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5 years ago
Slight Smile Good luck on the rest
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