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>Prices go up because demand is higher than supply. No other reason. If the government mandates that the price of something is X, and X is higher than the pric
by alasdair_ 8y ago
>Prices go up because demand is higher than supply. No other reason.
If the government mandates that the price of something is X, and X is higher than the price is now, prices go up.
Also, remember than nominal price and economic price are distinct. “Price” needs to include all tax subsidies and other incentives/ dicincentives.
- aey 8y agoNo they don’t. See the USSR, real prices were completely removed from what the government set. If SF set the price of a house to 100k, people would just bribe each other the difference.