The price ceiling for poor

The article talks about Whole Food Market sets up a rice ceiling for the poor people. Although it attracts more people and seems increase the demand, it is not economic profitable for those poor people. It is because these people will spend too much time on waiting to get cheap stuffs, but they can use these time to do other things. There will be a loss of the resources. It really happened and we can see from the article: the parking lot is full of people who are waiting for the cheap goods. The market cannot work efficiently because the price ceiling will create the dead weight loss. Although the price ceiling aims well and is good for the consumers, it is not a good choice for the economy reaching the maximum profit. From the economists and the producers’ view, price ceiling is not a good thing because it will economic inefficiency and the producers can not get their maximum benefits. However, from the producers and governors’ view, price ceiling is great because it lowers price and more people can afford the goods.

 

http://www.wsj.com/articles/whole-foods-sets-up-shop-in-low-income-neighborhoods-1476010801

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