This is an instance where government price ceilings caused long term prices to remain elevated. Government removed the incentive for competitors to come in and increase supplies. Every one understands that price ceilings reduce supply, but it is less known that they actually raise prices longer term.
This is an instance where government price ceilings caused long term prices to remain elevated. Government removed the incentive for competitors to come in and increase supplies. Every one understands that price ceilings reduce supply, but it is less known that they actually raise prices longer term.
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