You would think it should be common sense.
If prices are arbitrarily set too low, more people will want to but the product or service and fewer will want to produce it, and a shortage results. If prices are set arbitrarily too high,more people will want to produce the product or service, but fewer will want to buy it, resulting in a glut.
One only has to reflect on the recent stories from Venezuela where, among other staple goods, there is a shortage of toilet paper. Why? Because the government