Hello, everyone.
I welcome you to my blog and another wonderful edition of the hive learner's featured post. When you are on the side of the road you feel like driving is easy until you are the one behind the steering wheel, the same thing happens in business (buying and selling), you will think it is very easy to build a business from the ground until you are the one running the business or trying to build a business from the scratch. Every business we see thriving today we must know that sacrifices have been made and it has taken a lot time and struggles to see that the business thrived and gets to the level it is.
Price cap in layman's terms is the price the government or regulatory body set to be the highest price or the lowest price a commodity or good can be sold for, with a price cap we can say that the market is being controlled and regulated to ensure that things stay affordable and not made too expensive for the masses. If there is no price cap in place some people will want to make excessive profit from goods there by making it expensive and unaffordable for a lot of people which makes having a price cap in place very important, humans they say are higher class animals but without necessary regulations and authorities in place to make sure that we are acting right as humans we are definitely going to find a lot of humans doing the wrong thing and going rogue.
Yes, it is a good thing though it has some disadvantages but I think advantages of having a price cap in place outweighs the disadvantages that comes with it and the fact that the advantages outweighs the disadvantages makes it a good thing. Like I have said before we humans if there is no authority or rules in place we tend to go rogue and enjoy doing the wrong things which makes having rules to keep humans in line very important and one of the many ways to keep us in line is price cap.
Many people are greedy and if allowed or giving the space they will want to make excess profit from a particular commodity even if it means making it unaffordable for others, because of the cost of transporting all your goods to your shop topped by a dollar, you now want to add price to every single thing just to cover for it and when people complain you blame the cost of transportation, but deep down within you, you know that you are going to gain even more than you have spent, but you don't care. That is why price caps are important and implemented to control people like this.
We all have that one shop in our area that we only go to because we feel tired; aside from that, we avoid that particular shop like the plague because the owner has made it a habit to sell things extra expensive while others are selling cheaper and at a lesser price. A price cap in a working country is implemented to avoid having people like this or giving them a space to hike the price of goods.
My answer to this is no, as much as it is good in a way, but it will only favor business owners along the line, especially when greed starts to come into the picture. When business owners are allowed to control price, there will be merits and demerits, but in this case I feel the demerits outweigh the merits; therefore, the right bodies should be allowed to control price and not business owners.