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Due to the recent coronavirus outbreak (2020 for future readers), many consumers worldwide are overstocking on non-perishable products like toilet papers and hand sanitizers, in order to avoid shortages producers and retailers respond by increasing their prices, the Argentinian government has responded to these price surges by establishing maximum prices for these products, official statements describe the objective of these measures is to prevent businesses from "taking advantage and making a profit out of the necessity and anguish of the people."

Is this an effective measure against speculation? Does price-capping have a negative effective on production output by reducing incentives and funding? Does price-capping reduce product availability? Does it improve the equality of its distribution?

Thank you.

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  • $\begingroup$ Hello, please let me know if "What are the consequences of" is too broad of a question, I can reduce the scope to a specific hypothesis on either product distribution or production output. $\endgroup$ – Tomas Zubiri Mar 21 at 16:38

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