Submission statement: Economic policy is our bread and butter. This discussion of price controls complicates the econ 101 understanding of consumer welfare loss from price controls. Price controls amplify small shocks and create severe geographic shortages. The econ 101 explaination of the losses from price controls are the best case scenario for consumers with real shortages often being much more severe.
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Submission statement: Economic policy is our bread and butter. This discussion of price controls complicates the econ 101 understanding of consumer welfare loss from price controls. Price controls amplify small shocks and create severe geographic shortages. The econ 101 explaination of the losses from price controls are the best case scenario for consumers with real shortages often being much more severe.