government may enact a price ceiling in order to slow inflation.
government may enact a price ceiling in order to slow inflation.
government my enact a price ceiling in order to accomplish what?
slow inflation
price controls are restrictions, usually by governments, on the prices that can be charged for goods and services in a market. the intent behind implementing such controls can stem from the desire to maintain affordability of goods even during shortages, and to slow inflation, or, alternatively, to ensure a minimum income for providers of certain goods or to try to achieve a living wage. there are two primary forms of price control, a price ceiling, the maximum price that can be charged, and a price floor, the minimum price that can be charged. a well-known example of a price ceiling is rent control, which limits the increases in rent. a widely-used price floor is minimum wage (wages are the price of labor).
price controls
many scholars advocate the implementation of a free market system to combat the organ shortage that helps drive illegal organ trade. the organ trade's illegal status creates a price ceiling for organs at zero dollars. this price ceiling affects supply and demand, creating a shortage of organs in the face of a growing demand. according to a report published by the cato institute, a us-based libertarian think tank, eliminating the price ceiling would eliminate the organ shortage. in the "journal of economic perspectives," nobel laureate gary becker and julio elias estimated that a $15,000 compensation would provide enough kidneys for everyone on the wait list. the government could pay the compensation to guarantee equality. this would save public money, as dialysis for kidney failure patients is far more expensive.
organ trade