IPI Policy Basics: What is a Price? (Audio: Podcast)

Published: July 29, 2021, 4:11 p.m.

There's a lot more going on behind the price of a pint of strawberries than just an arbitrary number. Prices convey information--an enormous amount of information. And if we understand the importance of price in signaling, rationing, and incentivizing production, then it's obvious why government price controls and "price gouging" laws are a terrible idea.