government should not control the prices of important goods like gasoline
The flexibility of goods is essential in any economy. It helps the economy to maintain the law of supply and demand. The production cost varies from time to time, which makes it necessary for the prices of the goods also to change. For instance, if the cost of production of bread rises, the price of the bread in the market will also rise to maintain profitability. Second, flexible pricing is essential to sellers when it comes to the issue of perishable goods. Instead of the products going into waste, the seller decides to sell them at a lower price, making them make profits. For instance, last-minute vacant airline seats are considered to be perishable goods. If an airline allows negotiations with its customers about them, there are high chances that the seats will be occupied. Lastly, naturally, customers like flexible pricing because it enables them to have bargaining power.
In my opinion, the government should not control the prices of important goods like gasoline. The US is a free market where sellers can decide on the prices to maintain business equilibrium. Controlling the prices reduces competition between different sellers, and this is likely to affect them negatively. The sellers cannot give bonuses like discounts to their customers because the prices are fixed. Allowing the government to regulate the prices will mean that even when the prices are high, people will be forced to buy them, transforming to low sales by the companies. Also, the cost of transferring the goods differ from one place to another. Fixing the prices countrywide would affect product sellers negatively because transport cost might be high which will contribute to losses
.