In the following figure, the first panel shows a market situation prior to regulation and the second panel shows the effects of regulation.Figure 14.2
In the figure,
D: Demand curve for automobiles
S 1 : Supply curve of automobiles prior to regulation
S 2 : Supply curve of automobiles after regulation
FG: Clean up cost per unit
-Sherman Antitrust Act bans price discrimination that substantially lessens competition or injures particular competitors.

Question

In the following figure, the first panel shows a market situation prior to regulation and the second panel shows the effects of regulation.Figure 14.2
  In the figure,
D: Demand curve for automobiles
S 1 : Supply curve of automobiles prior to regulation
S 2 : Supply curve of automobiles after regulation
FG: Clean up cost per unit
-Sherman Antitrust Act bans price discrimination that substantially lessens competition or injures particular competitors.

Quizplus · Accepted Answer

The statement about the Sherman Antitrust Act is not relevant to the information provided in the figure. Therefore, it is neither true nor false based on the information given.

In the Following Figure, the First Panel Shows a Market