
The other issue is with caps in place, people lack incentive to do extra, so less people crafting or gathering, since there is nothing to gain. This leads to lower supplies.I think one thing you need to understand it the problem with price controls.
People who don't have an understanding of economics first reaction is to create a low price ceiling with the good intention of thinking everyone will now be able to afford items.
This creates a problem with suppliers when the price ceiling is very low. If the price ceiling prevents a profit then the supplier will stop making that item and then there will be shortages.
http://en.wikipedia.org/wiki/Price_ceiling
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