[Related to the Apply the Concept on page 124] According to a news story, in late 2016, a recent college graduate
in Caracas, Venezuela, hadn’t eaten meat in a month. He
was quoted as saying it was “not because we can’t find
meat, but because it’s very expensive.” Meat, like other
food in Venezuela, was subject to a price ceiling. Why then
was it very expensive? Illustrate your answer with a graph.
Source: Patrick Gillespie and Osmary Hernandez, “Venezuela’s Food
Prices Skyrocket as People Go Hungry,” cnn.com, October 21, 2016.