The Price System Assignment Example | Topics and Well Written Essays - 500 words

The Price System - Assignment Example The cigarettes packed in packets were essential for large transactions because they attracted good offers from the smokers. However, the cigarettes were also not convenient for a currency because people smoked them during the low supply seasons (Radford 1945, p. 190). The other disadvantage is that some prisoners reduced the tobacco contents in the cigarettes to make their own hand-rolled cigarettes for resale. British households devise arrangements to share their washing machines because of the high demand that the machines attract in the neighbourhoods. It is apparent that most British do not like washing their clothes because of time limitations and the high prices charged at the laundries. As a result, they enjoy spending money on expensive durable goods that they use for a few hours each week, which are cheaper than acquiring the services of the launders. During the alcohol beverages prohibition in the US between 1920 and ‘33, whisky and gin were plentiful because the clients were willing to use the substitutes. It is apparent that the shortage of a product will increase the demand of the substitute commodities. This is because the clients were willing to consume any alcoholic drink that could help them overcome the thirst or enjoy their time. Price control is government’s intervention in the liberal markets in a bid to set the maximum and minimum charges for commodities. An example of the price control is the price ceiling, which the highest price to charge, while the price floor is the lowest cost to implement. In this regard, prices set by the government can cause either a shortage or a surplus in the economy. The property rights of people are the privileges to control the way in which particular resources will be used. This does not consider the owner of the property, whether it is possessed by an individual or the