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The attempts to control the price of gasoline below its equilibrium level in the 1970's led to shortages and long lines at the gas pumps. On the other hand, attempts to support the price of farm products above equilibrium prices has led to large surpluses in the markets for many agricultural products in the U.S. and Europe. Usually attempts to control prices are a response to the view that market prices are not always "fair." Therefore, government regulation of prices is based on equity issues.
Dilemma: markets may not be always "fair," but attempts to interfere with its operation may lead to other problems (Recent examples: Venezuela's economy; toilet paper)*
Please, be rational in your discussion. Explain your position elaborately. Also, in responding to others, do not simply agree or disagree rather provide a constructive feedback.
You are strongly encouraged to use references from other sources to back up your claims. Remember, to cite your work.
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