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It's not that simple. It all depends on the supply elasticity and the implementation of the particular control.
by kube-system 3y ago
It's not that simple. It all depends on the supply elasticity and the implementation of the particular control.
- justrealist 3y agoFood is like the #1 example of a highly fungible good where supply responds aggressively to price fluctuation. Incredible amounts of marginal farmland that comes in and out of production based on market prices. (so, to be crystal clear, price caps are a horrible idea).
- kube-system 3y agoPrice caps are not the only example of price controls. There are price controls on some foods in the US. There's also farm regulation that manipulates farmland going in and out of production artificially. It already isn't driven solely by the free market.