Birdwatch Note Rating
2024-03-01 09:17:28 UTC - HELPFUL
Rated by Participant: 2BB73CEE71EC72CF06D86D3148621F2B0C91C589993B8D696E72AE38C43ACF5A
Participant Details
Original Note:
If the government sets prices below the market equilibrium, this can result in shortages and reduced quality, as suppliers may not be willing or able to produce enough to meet demand at the controlled price. This is a well-documented phenomenon in economic literature. https://fee.org/articles/price-controls-and-shortages/ https://iea.org.uk/publications/research/flaws-and-ceilings-price-controls-and-the-damage-they-cause https://www.jec.senate.gov/public/index.cfm/republicans/2022/9/the-economics-of-price-controls
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