"Consumers don't pay for regulations except in those situations where demand for a product/service outstrips supply." This doesn't make sense. Demand may outst

"Consumers don't pay for regulations except in those situations where demand for a product/service outstrips supply." This doesn't make sense. Demand may outstrip supply at a certain price, but that just means that the price must go up. If a market is clearing, then the regulation (or a tax) will be borne by buyers or sellers in proportion to the relationship between the supply and demand elasticities.