trogulj

varundarji Wrote:
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> So the supply curve will shift upwards and will
> intersect the demand curve at a price greater then
> the equilibrium price of 10$ i.e. say $12....so
> this means that the rice will go to that ppl who
> value it the most ....there will be an
> underproduction of rice in the market and will
> result in a dead weight loss....
>

Is this true? I don't think supply curve will shift in this case.