4 ms·
Because price controls lead to shortages. Econ 101.
by pwned1 8y ago
Because price controls lead to shortages. Econ 101.
- wahern 8y agoFree markets can lead to shortages, if by shortage you mean quantity of some good or service available at a particular price that is less than what is socially (normatively) desirable. Japan implements complex price controls on healthcare and many would argue they provide much better healthcare. But many would argue otherwise. Between those viewpoints lie the reasons why a price control strategy might not work well in the U.S.