Suppose you are doing historical research on cassette tape production in the USA during the Reagan Administration. Your records tell you how many cassette tapes were produced each year during this period of time, but it does not tell you the price of the cassette tapes.
You find a document that says that in the year 1983, President Reagan issued an “Edict on Prices,” but you don’t know if he imposed price ceilings or price floors. You can clearly tell from the documents that the number of cassettes actually sold in markets fell dramatically, and that both potential cassette sellers and potential cassette buyers were unhappy with the edict.
With the information given, did President Reagan impose a ceiling or a floor? How do you get this?
You find a document that says that in the year 1983, President Reagan issued an “Edict on Prices,” but you don’t know if he imposed price ceilings or price floors. You can clearly tell from the documents that the number of cassettes actually sold in markets fell dramatically, and that both potential cassette sellers and potential cassette buyers were unhappy with the edict.
With the information given, did President Reagan impose a ceiling or a floor? How do you get this?