(solution) 7. Often governments impose price ceilings, and other mechanisms of regulation, on energy…

(solution) 7. Often governments impose price ceilings, and other mechanisms of regulation, on energy…

Often governments impose price ceilings, and other mechanisms of regulation, on energy sources. Are they positive or negative? Provide examples. 8.     Scarcity rent is often treated as a revenue source; reducing it often benefits consumers. Policy-makers use this rationale to curb energy prices. Provide a reason, apart from producer’s gains, to avoid this principle.