Alongside supply, subjective value is one of the biggest factors in determining prices. High prices indicate low supply but high demand. Low prices indicate high supply but low demand. Prices are not just arbitrary numbers slapped on commodities, but indicators about them when it comes to allocation of resources.
This is why price controls are such a dangerous concept. They distort economic calculation, resulting in it becoming impossible to identify which items are more popular, have surpluses, or have shortages, resulting in confusion over whether to spend or save money.
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