Price ceiling and wage control in different states
Price ceiling is described as the way in which government uses its powers to regulate prices of products. Suppliers, producers and customers are the key stakeholders in marketing when using c ceiling. Price ceiling has both advantages and disadvantages on the market. Producers cannot hike prices of products when the government uses price ceiling even during inflation. Suppliers are also regulated on the prices they will sell their products which benefits customers (Gwartney, 2009). Price ceiling have impacts on the paper producing industry since regulating prices will benefit customers but will make suppliers incur losses.
When the US government imposes tariffs and uses price ceiling, producers will incur looses while customers will be advantaged. This change will influence negatively on the economy since the wood is imported on high prices from Canada. The government should not use price ceiling since the economy will be affected negatively. Producers and suppliers will not involve themselves in a business which they are incurring looses thus the quality of papers produced will be low (Gwartney, 2009).
Wages and rent expenses should be minimal in each country. The government is an important factor in the market since some suppliers and producers make their prices higher than given standards. Though the government is useful in controlling prices, it should be careful in order to avoid limiting producers and suppliers from supplying quality and quantity products (Gwartney, 2009). Price controls are important and beneficial to citizens of a given state thus the government should control prices in a standard way, which will benefit both customers and suppliers.
Different states have different controls over the wages. The controls should be standard in different countries considering the economic status of the states (Gwartney, 2009). The wage control rate in my state is different from other states since the government policies are different in those states.
References
Gwartney, J. D. (2009). Macroeconomics: Private and public choice. Mason, OH: South- Western Cengage Learning.
