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But what is the price ceiling in this case? I fail to understand this argument, as this doesn't regulate the price of manufacturing a good but rather then price
by yladiz 7y ago
But what is the price ceiling in this case? I fail to understand this argument, as this doesn't regulate the price of manufacturing a good but rather then price of its sale. If manufacturers aren't the ones setting the high prices then why would they be disincentivized to make more goods?
- justinmeiners 7y agoDistribution is also a cost. Imagine a hurricane where roads are damaged and supplies can't be brought it. If incentives are high enough people will urgently find a way to get it in to sell things people want If prices are fixed, they may just wait until the normal trucks can make a delivery.