2007-06-05 09:16:10 · 6 answers · asked by lorrnae 3 in Politics & Government ➔ Other - Politics & Government
Price setting is always bad for business as it distorts the market. Set a price to high, and you produce an unneeded surplus, wasting resources. Set it too low, and you cause a shortage.
2007-06-05 09:21:42 · answer #1 · answered by B.Kevorkian 7 · 1⤊ 0⤋
Here in England, if you go to your doctor and he writes a prescription for you, there is a charge of £6.00 for each item on the prescription (3 items would cost £18). This is a government-imposed charge which was only £0.20 back in 1979 when Margaret Thatcher became Prime Minister
2007-06-05 16:25:31 · answer #2 · answered by Anonymous · 0⤊ 0⤋
Anytime you attempt to by-pass the free market system, that's bad. Its the drive for profits that stimulates innovation. Price controls stagnate the industry.
2007-06-05 16:41:00 · answer #3 · answered by kathy_is_a_nurse 7 · 1⤊ 0⤋
Just ask Jimmy Carter how controlling gasoline prices worked out for him and the country...
2007-06-05 16:33:54 · answer #4 · answered by floatingbloatedcorpse 4 · 0⤊ 0⤋
Government controlled prices are always a disaster. ~
2007-06-05 16:20:23 · answer #5 · answered by Anonymous · 1⤊ 0⤋
Perhaps, but definitely bad for the people because research and development would be cut back drastically because it's very expensive.
2007-06-05 16:20:00 · answer #6 · answered by Sean 7 · 1⤊ 0⤋