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10 sats \ 4 replies \ @Undisciplined 7 May \ parent \ on: What is it like to live in Venezuela currently? Current economy econ
A price ceiling means that it's illegal to sell electricity above a certain price. Even the most resource rich places, still have a limited energy supply.
When the price is held down artificially, energy intensive activities will expand to take advantage of the lower prices.
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21 sats \ 3 replies \ @Satosora 7 May
I see. Dont they have hydro electric though? That is like infinite....
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10 sats \ 2 replies \ @Undisciplined 7 May
At any given moment there's a finite amount of power being generated from hydro plants, even if they were to produce energy indefinitely.
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0 sats \ 1 reply \ @Satosora 7 May
Isnt that finite amount usually 125% of what they need?
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2 sats \ 0 replies \ @Undisciplined 7 May
There's no such thing as "what they need". At any given price there's a quantity that will be economical to use (demand) and an amount that will be economical to produce (supply).
When prices are artificially suppressed demand > supply, which means there's a shortage.
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