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Price ceilings also have a way of doing that (by limiting production, which therefore limits consumption).
by cryptonector 5y ago
Price ceilings also have a way of doing that (by limiting production, which therefore limits consumption).
- s1artibartfast 5y agoI totally agree, it also works for limiting sales of existing goods. If you put a price ceiling of $1 on paintings, owners will hold and not sell. If you want to kill the market for paintings, this would be very effective at doing so. You can imagine similar impacts of price floors or ceilings for real goods like land and housing.