Opinion on Price Control
My opinion is that the government shouldn't be able to put price ceilings on goods and services in our market. There are many reasons I disagree: price ceilings can cause suppliers to drop out of the market causing a reduce in supply, it can also strengthen use of the black market, and many times it discriminates against people.
Having price ceilings can cause a shortage of goods in multiple ways. It can cause suppliers to drop out of the market because of shortage of profit, yet also sell-out the object because of its price. For example, if Starbucks had a price ceiling on their coffee of 25 cents per cup the coffee would be sold out almost immediately; there would be a shortage in supply.
Price ceiling can cause discrimination against citizens. For example, if there was a price ceiling on the cost of apartments and there were many people applying the owner of the complex could pick and choose the people he would like to live there.
I believe that price ceilings on our market economy cause shortage in many goods, causing a unbalanced market equilibrium. There would be a high demand for the goods sold but not enough supply.
Having price ceilings can cause a shortage of goods in multiple ways. It can cause suppliers to drop out of the market because of shortage of profit, yet also sell-out the object because of its price. For example, if Starbucks had a price ceiling on their coffee of 25 cents per cup the coffee would be sold out almost immediately; there would be a shortage in supply.
Price ceiling can cause discrimination against citizens. For example, if there was a price ceiling on the cost of apartments and there were many people applying the owner of the complex could pick and choose the people he would like to live there.
I believe that price ceilings on our market economy cause shortage in many goods, causing a unbalanced market equilibrium. There would be a high demand for the goods sold but not enough supply.
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