Effects of price decontrol include;
1: Incase if it was a price ceiling,the prices will tend towards the equilibrium
2: Incase of a price floor,price control will to reduce towards the equilibrium
3: It may encourage greater investment since producers can charge more profitable prices
4: Its likely to lead to more efficient long run allocation of resources because of absence of excess demand and supply
5: In the long run many firms enter decontrol lines of production which will lead to increased government revenue since producers will produce more
6: It encourages competition which will lead to lower consumer prices
Kalis answered the question on March 23, 2018 at 13:22
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