“Sellers in general maintain the quality of their products and services for fear of losing customers otherwise. But, when price controls create a situation where the amount demanded is greater than the amount supplied - a shortage - fear of losing customers is no longer as strong an incentive. For example, landlords typically reduce painting and repairs when there is rent control, because there is no need to fear vacancies when there are more tenants looking for apartments than there are apartments available.”
Quote by Thomas Sowell
Author
Thomas Sowell
Thomas Sowell is a renowned economist, born on June 30, 1930. His research spans across various fields such as economic policy, race, and social issues, having a profound impact on economics and the social sciences. more
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