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57 sats \ 4 replies \ @SimpleStacker 19 Aug \ parent \ on: Grocery Store Price Gouging? econ
Tell them to stop thinking about price and start thinking about quantity.
Problem is too much money chasing the same number of goods.
Will price controls increase the amount of goods companies are willing to produce?
If they say corporations are greedy, ask them if they suddenly became greedy in 2021. No? I wonder what changed in 2021 🤔
Yup. Prices are just information about two quantities: how much people want, and how much there is to sell.
If you force people to trade at a certain price, you're barring the average consumer and the average buyer from ever trading at a price they would agree on. That means a decrease in revenue, and ultimately a decrease in jobs.
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Price control means shortages