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In the Following Figure, the First Panel Shows a Market

question 51

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In the following figure, the first panel shows a market situation prior to regulation and the second panel shows the effects of regulation.Figure 14.2
In the following figure, the first panel shows a market situation prior to regulation and the second panel shows the effects of regulation.Figure 14.2    In the figure, D: Demand curve for automobiles S<sub>1</sub>: Supply curve of automobiles prior to regulation S<sub>2</sub>: Supply curve of automobiles after regulation FG: Clean up cost per unit -Regulation of monopolies is justified on the ground that a monopolist sells too less at a too high price. In the figure,
D: Demand curve for automobiles
S1: Supply curve of automobiles prior to regulation
S2: Supply curve of automobiles after regulation
FG: Clean up cost per unit
-Regulation of monopolies is justified on the ground that a monopolist sells too less at a too high price.


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