Question

Suppose apples are currently selling for 50 cents each. Someone says that apple sellers can't make a decent living if they sell their apples so cheaply. He says there should be a law stating that no one can sell an apple and no one can buy an apple for less than 75 cents. He intends for the law to raise the income of apple sellers. What might be an unintended effect of this law? Explain your answer.

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We have to suppose apples are selling for 50 cents each, and that someone says that apples are too cheap for sellers to make a decent living, so there should be a law that guarantees a price of 75 cents per unit.

We have to explain what might be an unintended effect of such a law.

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