Good-bad paradox in agriculture
Problem: If the demand for farm products were elastic rather than inelastic, would the good/bad paradox still exist? Why or why not.
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Consider a market characterized by the following inverse demand and supply functions: PX = 10 - 2QX and PX = 2 + 2QX? Compute the number of units and the price at which those units will be exchanged when there is an $8 per unit price floor.
a. What is the equilibrium price in this market with no government intervention? Show your work. b. What is the equilibrium quantity in this market? Show your work.
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A 2016 survey of undergraduate students considered this further and found that compared with students that did not use cannabis at least once
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