The logic behind the failure of command pricing – as I understand it – is that setting a certain price for the sale of a product doesn't change the cost of extracting it i.e. if a government mandanted selling coffee for 10$ instead of 20$ and it took 15$ to grow it, people would stop selling it. What's makes petrol so special?
If price controls or command pricing is generally ineffective, why does it work so well for petrol?
byu/Agreeable-Can-5227 inAskEconomics
Posted by Agreeable-Can-5227
1 Comment
What country is your question about?