Suppose the economy produces only 2 goods consumer goods


Suppose the economy produces only 2 goods: consumer goods and capital goods (K). Also suppose the economy is operating at full employment. Finally, suppose consumer goods are subject to legal price controls (price ceiling). Use a PPF to show the economy's output combination of C and K goods with price controls versus the economy's output combination without price controls. Explin your reasoning.

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Business Economics: Suppose the economy produces only 2 goods consumer goods
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