Pandemic Pricing: Why Prices Need to Rise During Emergencies
Published October 6, 2020
During emergencies, increased demand for goods and services often causes prices to rise. Though they may seem cruel, higher prices discourage hoarding and encourage manufacturers to increase production. Price controls that stop the prices of essential products from rising in emergencies lead to shortages that leave everyone worse off.
- What are some examples of markets in which price controls have failed?
- How do supply and demand influence prices?