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3 answers

There would be a surplus of gasoline since producers would be willing to supply more at this fixed price than consumers demand.

2007-01-02 06:50:17 · answer #1 · answered by Shane87 2 · 1 0

Your name sounds Japanese and I believe it is where this happens what you have asked. The answer is very clear unless the wage rates are high this will crowd out consumption in other sectors of business and the Japanese don't have to worry since they are a high wage country.
Tampering with market forces is always dangerous unless you know how to manage such changes which the Japanese are very efficient at doing. They run the negative economy for other reasons to have low exchange rate for their currency but they stock high valued currency as reserve which nuetralises the effect of low currency policies and enhances their basic need for their industry to find markets outside Japan.
For other countries it will be catastrophic, like it will create the Hoging effect of one business sector by the other. The efficiency of Technology will be submerged, income disparity will rise and ultimately the value of the currency will be threateneded which will lead to cascading effects.

2007-01-03 06:49:57 · answer #2 · answered by Mathew C 5 · 0 0

why should the gov fix anything if we could get rid of the crooked politicians and the tree huggers we would have plenty of gas the Arabs own most of the oil so why shouldn't they charge what they want people seem to forget this is a free market controlled by supply and demand .

2007-01-04 07:13:53 · answer #3 · answered by victor m 3 · 0 0

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