Birdwatch Note Rating
2024-03-01 03:19:59 UTC - HELPFUL
Rated by Participant: 58A2D513949A558E11D6CFBBC037621CBE74DF90556FE93FBEB45FD6A0E0AE64
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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