[TheOtherHobbes]

Of course absence of price control mechanisms can also lead to scarcity through bubble mechanisms - which can be tamed through taxes.

Ask anyone trying to buy a house in Vancouver.

Does Mankiw mention this in his "requirement for informed criticism"?

[stupidhn]

>Does Mankiw mention this in his "requirement for informed criticism"?

Are you honestly asking whether Mankiw discusses supply/demand price effects in his textbook?

[kevinnk]

Prices are high because demand is high and supply is low. Yes, that gets covered.