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In: Economics

Suppose the majority of the residents of Birraland live close to the border and have access...

Suppose the majority of the residents of Birraland live close to the border and have access to beer at a lower price either in another province or in a neighboring country. What do you expect to occur? What does this imply about the ability of the local government of Birraland to independently set their beer pricing policy? Which jurisdiction is likely to be more problematic, other provinces, or the neighboring country?

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