[sofixa]

> You need to revisit Economics 101. High demand -> price rise -> more supply -> price drop. If you set a price ceiling, this will make the shortage worse as the market cannot properly function.

And you need to revisit Economics 102 where they talk about inelastic demand and why some prices are usually controlled at least to an extent ( food, medication, electricity), and Economics 103 where they mention they real world and economy are slightly more complex and have slightly more variables than what Economics 101 started with.

[ericyan]

Your are right about your last point as in real world there is no such thing as inelastic demand.

Food definitely is not as in that case there will be no need to pour the milk into the river during the Great Depression. Basic medication such NSAID are cheap because there's no patent and can be mass produced and things like Novartis’ Zolgensma is apparently a different story. For electricity, don't get me started with Texas... I agree it probably a problem that is it is not controlled there.

The point is, yes there will be more variables in the real world, but the most basic rules still applies.