If price controls are so harmful, why would a country ever impose them?
A) No one really knows.
B) Price controls are usually thought to be beneficial.
C) Politicians have strong incentives to respond to public opinion with price controls when prices increase sharply.
D) People usually see the consequences of price controls but think they will be a good policy.

Question

Quizplus · Accepted Answer

Politicians have strong incentives to respond to public opinion with price controls when prices increase sharply, as it can be politically unpopular to allow prices to rise unchecked. However, this does not necessarily mean that price controls are actually beneficial or effective in the long run.

If Price Controls Are So Harmful, Why Would a Country