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  • What would you pay for a glass of water if you were stuck in the desert?

    When there is a shortage of goods, especially necessary goods, the people with access to it have all the leverage. If I had water and we were both stuck in the desert, you would pay almost anything to have it, because it is vital to your survival. In this situation, I have all the leverage. To protect you as a consumer, the government enacts price controls. That way in a time of shortages you won't be taken advantage of.

  • Shortages lead to price controls

    Shortages of goods does lead to price controls, and this only makes the problem worse. If price controls were not used then there would not be any shortages because the market would dictate the price. The government should stay out of the supply and demand chain and things would work well.

  • Shortages if goods lead to price controls.

    Yes shortages of goods lead to price controls. Prices are influenced by supply and demand. When the supply of goods goes down the demand increases because there is less of that good to go around. As the availability of goods increases the prices reflect this increase by decreasing and supply increases and demand lowers.

  • Not at all

    No, when there is a shortage of goods it makes the price of that good go super high, and it is not good at all if you are trying to buy it. This is happening today with the amount of ammo across the nation, and the amount you have to pay for it now.

  • Price Controls cause shortages.

    Shortage of goods are caused by price controls, it is not the other way around. Price controls increase demand for the goods, and thus supplies are depleted. There have been many instances in recent years, where government interference have caused goods shortages. This has most recently occured in Venezula, where food shortages were blamed on price controls.


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