Question

What are the costs and benefits to the producer of more regulation? How about to the consumer? (Potatoes) (fast food market in general and french fries)

Answer 1

The producer of potatoes will get more demand if French fries and fast food styles are highly demanded among the consumers.

While considering the cost benefit analysis from the producer's point, he will yield more benefits than the cost of production because high demand for the fast food and French fries will make high demand to potatoes and this will increase the price of the potatoes, if supply is not increasing in the short run. But if the producer desires to have more benefits then he will put a higher price on his potatoes and with that returns, he will invest more on potatoes and thus the supply of potatoes increases in the economy

In the Point of a consumer, he will purchase more potatoes in lower prices, if the price is increasing then he will purchase potatoes only if he couldn't stay without fast food and French fries, otherwise he wouldn't buy potatoes