Markets Organize Economic Activity

Mankiw’s Ten Principles of Economics

Assume that each hour that people wait in lines represents a lost hour of work. Assume that the government in a developing country wants to set a price ceiling on bread in order to make this basic food more affordable. Under what circumstances would the ceiling lead to long lines and thus high costs in lost work hours?

Develop a response that includes examples and evidence to support your ideas, and which clearly communicates the required message to your audience. Organize your response in a clear and logical manner as appropriate for the genre of writing. Use well-structured sentences, audience-appropriate language, and correct conventions of standard American English.