Business, 07.05.2021 03:00 nisazaheer
In late 2018, malnutrition was widespread in Venezuela. Writing in an opinion column in the New York Times, Javier Corrales argued, "The government is making the crisis worse by...imposing more price controls." Source: Javier Corrales, "The Venezuelan Crisis Is Part of Maduro's Plan," New York Times, September 25, 2018. Shouldn't price controls help reduce malnutrition by lowering the price of food so more people can afford it? A. No. Price controls are intended exclusively to help support farmers to ensure that they are receiving a high enough price for their products to be able to keep supplying food. B. No. Imposing a price control below the equilibrium price in a market causes the quantity of the good available to consumers to fall because sellers will supply a smaller quantity, thereby causing some consumers to go without food that they would have been able to buy in the absence of the price control. C. Yes. Price controls, by definition, will always help reduce malnutrition by lowering the price of food so more people can afford it. D. No. Imposing a price control above the equilibrium price in a market causes the quantity of the good available to consumers to fall because sellers will supply a smaller quantity, thereby causing some consumers to go without food that they would have been able to buy in the absence of the price control.
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In late 2018, malnutrition was widespread in Venezuela. Writing in an opinion column in the New Yor...
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