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Unformatted text preview: Explain. 3. A lobbyist claims that the market demand elasticity for apples is -0.20 (Carlton and Perloff p.69), which is quite low. He concludes that since consumers are not very responsive to price that the price for apples must be very high relative to the cost of producing them and that the industry should be regulated. Is his argument sound? Explain. 4. Carlton and Perloff Chapter 3, Problems 2, 4, and 6....
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- Spring '11