Joke Collection Website - Mood Talk - Do you support price control in the housing market? What are the consequences of the maximum price (maximum price)
Do you support price control in the housing market? What are the consequences of the maximum price (maximum price)
An effective ceiling price will definitely lead to a shortage of supply, because the effective ceiling price must be lower than the free market price.
The reason why the government sets the maximum price is generally out of consideration for fairness. For example, in times of war or famine, the government will set the highest price for daily necessities so that the poor can afford it, which is conducive to social stability.
Another problem brought by the low-price policy is that high prices will cause inefficiency. When the profits of enterprises are maintained by high prices, the market will not look for effective ways to reduce costs, thus hindering technological progress.
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