Price controls during shortages backfire. Rationing water or electricity through regulation leads to waste and inequitable distribution.
Price controls during shortages backfire. Rationing water or electricity through regulation leads to waste and inequitable distribution.
Shortages are caused by interventions that force prices below the market clearing price (price ceilings/ price control)
Surpluses are caused by interventions that force prices above the market clearing price (price floors/price support)
