O REGIME DE PREÇOS EM ANGOLA (original) (raw)

The existence of price control on competitive markets harms society by reducing the amount of trade in the economy. Many economists have written that price controls reduce entry and investment in the long run. The controls can also reduce quality, create black markets, and stimulate rationing. Governments impose rules of prices for essential consumer goods, to keep cost of living within a manageable range. Price controls are governmental restrictions on the prices that can be charged in a market. There are two primary forms of price control, a price ceiling, the maximum price that can be charged, and a price floor, the minimum price that can be charged. However, in Angola the main method used was through the creation of rules for setting the profit margin, not of final prices paid. This is the main objective of this article: to list the set of rules that provide the basis of the governmental system of prices and its most significant implications on the pricing methodology.