b) Discuss whether preventing the price mechanism from working freely by usinggovernment price controls can ever be effective. ?
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need answer for this question watch
- Thread Starter
- 21-02-2016 15:33
- 22-02-2016 12:25
It creates efficiency loss by distorting consumer & producer surplus but it creates tax revenue and (just only large countries which can influence the world price) terms of trade gain for importing country when price is driven up by the tariff protection.
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