Question
Comment/Opinion on following statement: I believe that economists typically oppose price controls because they distort the natural allocation of recourses.I believe that this throws off
Comment/Opinion on following statement:
I believe that economists typically oppose price controls because they distort the natural allocation of recourses.I believe that this throws off the equilibrium and makes things imbalanced.I believe that the effects of price controls can be positive and negative.For example, price controlling can make things more affordable and easier to access.I also believe that the government can take price control and make it a negative thing.For instance, the government can increase prices so much that the demand for that item will bottom out.I believe that this is one reason that economist do not like price control.It makes it hard to tell where the true equilibrium is located.I believe that price control is another way that people take advantage of their consumers.In saying that, I believe that price control could be a positive or negative thing, but however in economics it is mostly always negative.
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