Japan

The Effects of Price Control in Japan If supply is greater than demand, the price of a product will decrease. If demand is greater than supply, the price of a product will increase. This is a simple rule that determines the price of almost all consumer goods. But what happens if the price is too high. What happens if there is a massive shortage or if a war breaks out and the price of everyday …

…of rice reserves. In conclusion, Japan's price control policy was created with the best intentions to improve agriculture income. While it succeeded in that aspect, the government and its people were hurt more by this policy. Even the farmers themselves who had their production limited became unmotivated. We see from this case scenario that sometimes the government needs to take a step back and play a limited role in the economy or practice laissez-faire economics.