Comments on The Emirates Economist: Price ceilings on healthy foods suggested

In our country healthy foods' prices gets very exp...

2008-04-21T13:46:00.000+04:00

In our country healthy foods' prices gets very expensive. Even I can't afford to buy. :D

Well, I agree with you, but to nitpick... supply d...

2007-03-18T22:16:00.000+04:00

Well, I agree with you, but to nitpick... supply disincentives are very sensitive to market conditions, i.e. the presence and size of "pure rents".

For a definite judgment you need to look at entry and exit conditions, number of suppliers, whether any of them is at an increasing returns stage in their business' development, etc.

In the end, you're 99.999% right, but we can imagine market conditions where a cap on prices would not disturb, with any serious magnitude, the quantity provided.

Another worry must be the black market which springs up any time a price is fixed. People have strong incentives to trade at other prices, in most situations... and they simply do it. How does that figure in this "master plan"?

As for subsidies... how would you finance them? It matters a lot.

It's very addictive ... I'm talking about Krispy K...

2007-03-17T22:18:00.000+04:00

It's very addictive ... I'm talking about Krispy Kreme ... I lived in the United States for 10 years and me among most of my friends just can't have enough of those greasy doughnuts.

Krispy Kreme is definitely not helping in bringing the UAE high rate of obesity down ...