Economics Today 18th Edition by Roger LeRoy Miller

تمرين 2

Stop, Kid! No Competing Farm Produce Allowed!
Madison Root is an 11-year-old sixth grader, and the Christmas holiday season has begun. Her family dentist in Portland, Oregon, has told her that she should have braces on her teeth. The price will be $4,800, and Madison has developed an idea for raising funds to help pay that price. Madison has visited her uncle's farm outside the city and chopped mistletoe, which she has wrapped into numerous bundles decorated with red bows. Now her father has driven her to the city's downtown Portland Saturday Market, where she plans to sell the mistletoe.
Shortly after Madison sets up to begin selling her mistletoe bundles, however, a security guard appears. Madison cannot offer her mistletoe for sale, the security guard informs them. To do so legally, she would have to submit an application and a $5 processing fee, provide a photo of the mistletoe-growing operations, present evidence of liability insurance, and hold a license with the state's agriculture department. Her only legal option for raising funds at the market, the guard says, would be to beg for money. She cannot sell mistletoe in competition with other produce vendors. Quietly, Madison packs her mistletoe bundles back into the family car, and her father drives her home.
How does prohibiting competitors such as Madison from selling their own farm produce at the Portland Saturday Market affect the prices that legally licensed sellers can obtain for their produce? Explain briefly.