Many believe that oil company greed is the root of the problem and that price limits enforced by the government will solve it.However, limiting the price of gasoline is a horrible idea.They would harm both consumers and producers by causing shortages and lines.
what problem is likely to result from this proposal?
- All American drivers are being impacted by the high cost of gas, but low-income households suffer the most.This is because, in comparison to homes with higher incomes, low-income households allocate a larger portion of their budgets to transportation expenses and other necessities like food and electricity.
- Price limitations have a wide range of negative consequences.By causing shortages, they frequently make consumers wait in line, they frequently cause the quality of goods whose prices are controlled to decline, and they might result in supplier bias.
- Until the price limitations are lifted, all of those consequences continue. In an effort to slow the rate of inflation, price controls can also be employed to cap price rises.
- Maximum prices have the potential to lower the cost of food and make it more affordable, but they also carry the risk of reducing supply and creating a scarcity.The price manufacturers get may rise with minimum prices.
To learn more about price controls refer
https://brainly.com/question/28754395
#SPJ4
