In the early 1970s, inflation was hitting the U.S. economy, andone of the results was that beef prices began to rise to recordlevels. Some of President Richard Nixon's advisers urged him toplace price controls on the sale of beef cattle with the intendedpurpose being to hold down the price of cattle. If cattle priceswere kept from rising, the advisers reasoned, then beef prices alsowould not rise. (The president did not follow theirrecommendations, but he did place overall wage and price controlson the economy for a while.) Had the president implemented thisrecommendation of price controls on beef cattle, would that actionhave resulted in lower beef prices? Why or why not?
