Amid a crisis triple threat in the US, and cramming for exams as students, there comes a bit of amusing news from Venezuela. It seems the country is on its last roll of toilet paper (toilet tissue). It appears the government, in an attempt to ensure the availability of several staples, set prices for those items. One wonders if the pols there were awake for Economics 101. Perhaps pols all own bidets.
At any rate, for those who may not be familiar with Economics: The laws of supply and demand suggest that there is a market price for toilet paper. At this price producers are happy to exchange their wares with consumers who are all too happy to purchase the product. When the government sets a price below the market, producers become unwilling to produce their product. Somewhat counter-intuitively this is called a price ceiling, because the government has dictated the highest legal price.
The government has promised to rectify the problem, but Venezuelans seem to think their government is full of it. Hopefully this is a brief respite from the stress of exams, unless you happen to live in Venezuela.
Jay is studying the Diploma for Graduates in Economics by distance learning with the University of London International Programmes. He lives in Florida, USA.