Price controls – limiting the price of goods through government intervention in a market – have fallen out of fashion to a great extent as an economic policy tool in the past couple of decades, but they may be making a comeback in Argentina, Russia and China according to the article below from Slate magazine.
Cry for me Argentina (and Russia and China) MSN Slate (30/10/07)
|1.||Using supply and demand diagrams as appropriate, illustrate the ways in which price controls have been used to influence prices in Argentina and Russia and China.|
|2.||Examine the reasons why the Argentinean government has chosen to implement price controls for energy.|
|3.||Discuss the likely effectiveness of price controls in combating inflation in Russia, China and Argentina.|